Noble shares plunge as they start trading ex-rights

 An employee walks past a signage of Noble Resources, a Noble Group subsidiary, at their premises in Singapore.
An employee walks past a signage of Noble Resources, a Noble Group subsidiary, at their premises in Singapore.PHOTO: REUTERS

SINGAPORE - Shares of Noble Group plunged on Tuesday morning (June 28) after the stock began trading ex-rights.

Noble shares were down 24.7 per cent to 16.2 Singapore cents as of 10:08 am with some 65 million shares changing hands. It was the third-biggest loser on the Sigapore Exchange.

Noble raised US$528.25 million in the one-for-one rights issue priced at 11 Singapore cents each - a sharp discount of about 63 per cent to the stock's closing price of 30 Singapore cents on June 2.

The commodity trader, hit by a commodity slump and attacks on its accounting practices, is seeking to raise cash and cut debt.

Outgoing chairman Richard Elman is taking up 9.58 per cent of the new shares, while sovereign wealth fund China Investment Corp (CIC) has subscribed for its full entitlement of 9.65 per cent.