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Johannesburg - Shares of Aveng are on the ropes on the threat of dilution after the construction company launched a 1.5 billion rand convertible bond, with an upsize option of another 500 million rand.

The bonds expected to carry a 6.75 and 7.5 percent annual coupon will mature in 2019.

Aveng has a free float of more than 416 million shares and a market value of nearly $915 million.

The proceeds will be spent on repaying some existing loans, extending its debt profile and for general corporate purposes, Aveng says.

Its shares are down nearly 6 percent at 22.10 rand, making it the biggest loser on the Johannesburg bourse. - Reuters