Johannesburg - Lonmin [JSE:LON] sank to a record low for a second day as investors fled after the third-biggest platinum producer said it would sell billions of shares at a fraction of the market price.
The stock dropped as much as 28% in London to 9.5 pence, an all-time low. It fell 38% in Johannesburg, the largest decline ever for Lonmin’s secondary listing.
The collapse has accelerated since November 2, with the stock down more than 15% in London in each of the past four days and sinking 18% on Monday as Lonmin said it would offer $407m of shares at a 94% discount to the prior market close. The rights offer is part of efforts to fend off an existential threat from sinking metals prices.