[SYDNEY] Australia & New Zealand Banking Group Ltd. shares slid the most in almost seven years on a A$2.5 billion (S$2.5 billion) share sale to raise capital and profit that missed analysts' estimates.
The stock fell as much as 8.5 per cent to A$29.80 in Sydney, the sharpest drop since November 2008. The shares were 6.2 per cent lower at 10:32 am local time, compared with a 1.4 per cent decline for the benchmark S&P/ASX 200 Index.
The Melbourne-based lender said Friday it sold 80.8 million shares at A$30.95 each, a 5 per cent discount to the closing price on Wednesday, to meet new capital rules. The bank reported Wednesday cash profit that missed expectations as bad-debt charges climbed, prompting some analysts cut their earnings forecasts.
The stock was halted from trading Thursday for the share sale to institutional investors. ANZ is also raising another A$500 million by selling stock to existing shareholders.