Harmony Gold stock falls 9% as it raises R1bn from new shares

Harmony Gold [JSE:HAR] announced on Wednesday morning that it raised R1.05bn ($82m) from the placement of 55 million additional shares. This is about R200m less that the figure it hoped to raise. 

The group's shares fell 9.19% in early trade on Wednesday, to trade at R19.77 at 09:55. 

The placement shares represent approximately 15% of the company’s issued ordinary share capital prior to the placing, the group said in stock exchange announcement. 

The shares were placed at R19.12 per share, which constitutes a 11.7% discount to the closing share price on June 5. 

Harmony said the listing and trading of the placing shares was expected to occur on the JSE on or around June 11. 

The gold mining company previously said it would use the proceeds from the accelerated book build to pay down part of an outstanding $150m loan it raised when it acquired the Moab Khotsong mine in the North West from AngloGold Ashanti in March.