Shares in energy giant Woodside Petroleum fell hard after coming out of a trading halt following an equity raising.
At the close, the shares were down down 7.8% to $28.63.
The company is raising $2.5 billion to buy a greater stake in the Scarborough gas field off Western Australia. It has a deal to acquire ExxonMobil’s 50% share of the Scarborough gas field in the Carnarvon Basin, giving Woodside a 75% interest.
Today the company announced its institutional offer raised $1.57 billion at $27 a share, with more 90% of eligible shareholders taking up their entitlements.
“We are pleased with the strong support from our institutional investors for the Institutional Entitlement Offer,” says CEO Peter Coleman.
“We consider this a positive endorsement of our strategy with the equity raising underpinning the acquisition of an increased interest in the Scarborough resource and its development, as well as progressing other projects in Woodside’s portfolio.”
The retail component of the offer will open on Wednesday. Retail shareholders will be able to subscribe for one new share for every nine Woodside share sat $27 each to raise $0.96 billion.