PROPERTY developer Oxley Holdings' stock has fallen by 4.5 per cent, after news broke on Friday morning that it intended to raise S$78.1 million by issuing 156.8 million new shares at S$0.51 apiece.
Oxley was trading at S$0.53 a share as at 10.05am, according to Singapore Exchange's data, the lowest level it has been since the beginning of March.
The issue price of its new shares represents a discount of about 8.8 per cent to its volume-weighted average price (VWAP) of S$0.559 for trades done on March 14, the property group said in a Friday morning filing.
It added that due to significant interest from institutional funds, the placement was upsized from the original 98 million shares to 156.8 million shares to cater to the increased demand.
Oxley said that the placement will contribute towards broadening the shareholder base and improving trading liquidity, with net proceeds from the placement going towards general working capital, including funding project development.