NZ sharemarket sinks 0.6% on Fletcher raise

The S&P/NZX 50 Index was up and down all day and closed at 12,404.17, down 74.33 points or 0.6%. The main board had 64 gainers and 83 decliners, with 44.63 million shares worth $170.75m changing hands.

Fletcher Building, the country’s biggest construction company, went into a trading halt after announcing the $700m capital raising to reduce debt and strengthen its balance sheet. 

The company is also reducing gross overheads by $180m in the 2025 financial year.

Fletcher is raising $282m through a fully underwritten institutional placement and $418m from a pro-rata entitlement offer to shareholders at $2.40 per new share. Fletcher last traded at $2.89. Shareholders will receive one new share for every 4.49 shares held.