Rakon shares have fallen 14% after the technology firm successfully issued $45 million of new shares to institutional shareholders.
Chairman Bryan Mogridge says the 39.1 million shares priced at $1.15 will be issued to investors in New Zealand, Australia, Asia and Europe.
Rakon, which makes components for GPS devices, says the proceeds from the placement will be used to pay for the construction of a manufacturing plant in China.
It plans to offer eligible New Zealand shareholders further shares, through a $20 million fully underwritten share purchase plan.
On Wednesday, Rakon's shares fell 21c to $1.28.
