3R Petroleum shares plunge on ‘surprise’ $180 million capital increase plan



Shares of Brazilian independent 3R Petroleum collapsed on Monday morning following the news that its board of directors approved an unexpected capital increase to cover the company’s expenses and investments.

3R operates several onshore and offshore mature assets in Brazil and focuses on redevelopment work to revitalise ageing fields.

The company on Sunday night announced plans to raise between 600 million reais and 900 million reais ($181.2 million) through the issuance of new shares.

“The capital increase may lead to the dilution of the company’s current shareholders who choose not to exercise their pre-emptive rights to subscribe to the shares issued under said increase,” the company said.