NOL stock down 15% after $308 million share issue

NOL stock down 15% after $308 million share issue    The stock price of Neptune Orient Lines dropped by 14.8 percent on Tuesday on the Singapore stock exchange, to S$2.08 ($1.20), after the Asian shipping and logistics company completed a share issue that raised $308 million through the placement of 236 million new shares.
   The placement was executed at S$2.32 ($1.34) per share, representing a 4.4 percent discount to the weighted average price of S$2.42 ($1.39) for shares traded on Friday, Nov. 7. Neptune Orient Lines, the parent company of APL Liner and APL Logistics, went to the stock market after suffering losses totaling $386 million in 2001-2002 that reduced its share capital and reserves.
   The stock fell rapidly on Tuesday despite a statement by David Lim, the new chief executive officer of Neptune Orient Lines, that the proceeds of the share issue would be used to repay debt and lower its gearing.
   The share placement increased the existing issued and paid up share capital of the company by about 19.9 percent, to S$1.4 billion ($810 million) comprising 1.4 billion ordinary shares.
   Neptune Orient Lines announced the share issue on Monday, as it also reported a net profit for the third quarter of $206 million, as compared with a loss for the same quarter last year of $28 million.
   The placement was facilitated by a scrip lending arrangement with Temasek Holdings, a government-owned organization that is the company’s single largest shareholder.