Stocks in iron ore miner Arrium are getting smashed on the ASX today, down more than 35% after the miner finished up the first part of a $754 million equity raising.
Arrium shares were down 36.62% to $0.412 a short time ago after the miner confirmed it had raised $465 million in equity today.
The miner said this was the first stage of the total $754 million it went to market with on Monday in the midst of a tanking iron ore price.
Arrium MD and CEO Andrew Roberts said:
“We are pleased with the support we have received from our institutional shareholders and other investors for this equity raising.”
“The raising will strengthen Arrium’s balance sheet and provide it with a more appropriate capital structure for the current environment.”
However, with today’s share price drop, it appears the market has some concern with the raising which could dilute earnings.
Phase two of Arrium’s capital raising will being on Monday and is aiming to raise $289 million.
September iron ore was almost flat overnight at $84.10 a tonne.