Johannesburg - PPC shares plunged after the South African cement maker said it was preparing a capital raising of as much as R4 billion ($256 million), while adding that talks with a credit-ratings agency will probably lead to a downgrade of the company.
The stock declined as much as 16 percent, which on a closing basis would be the biggest drop on record, and traded 11 percent lower at R12.15 as of 9.25am in Johannesburg on Monday.
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The shares are down 21 percent for the year, compared with a 3 percent gain on the FTSE/JSE Africa All Share Index.
The proceeds of the R3 billion to R4 billion capital raising will be used to reduce debt and fund expansion plans, PPC said in a statement.
The company will advise shareholders about the final decision of the credit agency, which it didn’t identify, when it has the information.
BLOOMBERG