Billabong shares plummet after discounted rights issue

Shares of Billabong have plunged after the firm launched a plan to sell new shares at a heavily discounted price and after it cut its earning forecast.

Its shares fell 49% to A$1.02 on the Australian Securities Exchange.

Last week, the embattled firm launched a rights issue priced at a 44% discount to its closing price of A$1.83 on 20 June.

The firm has been trying to raise new capital in a bid to pay off its debt and has also been hit by falling sales.