SINGAPORE (BLOOMBERG) - Noble Group, the embattled commodity trader raising about US$500 million (S$670 million) in a rights issue, received a query from the Singapore exchange over trading of its shares after the stock lost as much as 15 per cent.
The shares sank as much as 2.5 Singapore cents to 13.7 cents, the lowest since May 2003, and traded at 14 cents at 3.37pm local time after the exchange highlighted "unusual price movements". The Hong Kong-based company responded to say that it was unaware of the reason for the move.
Noble Group has raised the US$500 million in a one-for-one rights issue to shore up its finances with a fund-raising that's been supported both by chairman Richard Elman and China Investment Corp, Beijing's sovereign wealth fund.
The trader said on July 25 the issue was oversubscribed, and the new shares are expected to commence trading on Thursday.
The rights shares were offered at 11 Singapore cents each, and the company has said that the theoretical ex-rights price is 21 cents. The stock has tumbled 61 per cent over the past 12 months as Noble Group posted losses, had its credit-rating cut to junk and announced asset sales.