SINGAPORE (June 21): Shares of Noble Group, which fell 65% last year, is down another 46% year to date.

As at 2.35pm on Tuesday, its shares are trading at 21.5 cents as the market sells off on news of a deeply discounted rights issue.

(See: "Noble Group seeks $700 mil from rights issue; rights share priced at 11 cents each")

On June 15, Noble was also downgraded again by rating agency Standard & Poor’s.

(See: "Noble says ‘does not agree’ with S&P downgrade")

Analysts say some shareholders would rather cut their losses by selling in the market rather than subscribe to new rights shares at such a low price or accept dilution of their existing shareholdings.

Noble’s rights issue was priced at 11 cents each, a 63% discount to its June 2 close.

The company says the rights issue is part of capital raising plans that will help it streamline its business and improve its liquidity profile through a prolonged downturn in the commodities industry.

It also disputed the S&P downgrade.