Shares in Sahaviriya Steel Industries Pcl fell as much as 3.3% after the company said it planned to sell new shares to raise finances, triggering concerns over dilution.

The company posted a larger than expected net loss of THB 5 billion for the April to June 2012 quarter. It expects to continue to make a net loss this year due to an inventory loss and higher costs at its British operations.

Sahaviriya Steel shares were down 1.6% at THB 0.6 baht, falling at one point to THB 0.59, the lowest since October 2011. The broader index was down 0.41%.

The stock was down 15.5% in 2012, underperforming a 19.3% gain of the SET index.

According to Thomson Reuters StarMine, two out of six analysts tracking the company rated the company at buy, two analysts at hold and two at strong sell.

Source - Reuters

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