Shares of Aveng were on the ropes on Wednesday on the threat of dilution, after the construction company launched a R1.5 billion convertible bond, with an upsize option of another R500 million.
The bonds expected to carry a 6.75 and 7.5% annual coupon will mature in 2019.
Aveng has a free float of more than 416 million shares and a market value of nearly $915 million.
The proceeds will be spent on repaying some existing loans, extending its debt matury profile and for general corporate purposes, Aveng says.
Its shares were down 5.72% at R22.10 by 11:39, making it the biggest loser on the Johannesburg bourse.