Warnings Billabong shares would plunge in the aftermath of a $225 million capital raising and earnings downgrade have been realised, with shares falling 36 per cent after a trading halt yesterday.
Shares fell to 93 cents, well below its offer of $1.02 per share in a capital raising announced late last week.
The capital raising was launched in a bid to reduce the company's $325 million debt burden, coming just months after the company board declined a $3.30-a-share takeover bid.
In a statement to the market, Billabong confirmed it had raised about $155 million of the newly available shares through the insitutional component of its offer.
The retail component will take place from Friday under the same terms.
Billabong has downgraded its underlying earnings, which exclude one-off costs from a restructure, to be between $130 to $135 million for the year to June 30.
This was down from its forecast of $157 million in February.
Billabong: Girls summer 2011/2012 campaign.
