Nuplex, a resin and plastics manufacturer, which first listed in early 1967 on the stock exchange, is $A350 million ($NZ441 million) in debt.
Recently, it breached its banking covenants.
Then it struck a deal with its bankers to raise the $110 million, to be used to pay off some debt.
Shares in Nuplex have traded as high as $7.81, in October 2007; and last year hit a low of 58c.
At the beginning of the book-build, its shares were placed on a trading halt at $1.07, having lost 83% of value in 12 months, and leaving the company with a withered market capitalisation of $88 million.
The $110 million book-build was to have been $60 million to institutional investors in a range of 55c-60c per share.
The $50 million balance was to be through small investors, at a 10% discount to the eventual book-build price.
However, The New Zealand Herald reported Nuplex had dropped that share price target to 50c per share, spread equally between institutional and retail investors, following pressure from the large institutional investors, quoting an unnamed source saying only $35 million of the $110 had been raised so far.
Nuplex manufactures a broad range of resins in plants in New Zealand, Australia, Vietnam, Malaysia, Indonesia, China, the Netherlands, Britain and the United States.
The stock exchange extension yesterday means Nuplex does not have to report its (delayed) book-build until late today.
However, if it does not lift the trading halt and announce details of the $110 million book-build, it could apply for another extension.
ABN Amro Craigs broker Peter McIntyre said it was going to difficult to achieve the $110 million book-build, as institutional investors would be paying a lower price per share.
"The longer they extend, the more difficult it is going to be," he said.
He said it was 60-40 in favour of Nuplex not being able to achieve its $110 million book-build by 5pm today, and it was likely another time extension might be sought.
He said the "enormity of the task" was compounded by Nuplex having lost a large amount of its market capitalisation, which reduced its equity.
Also, as the strength of the New Zealand dollar waned, its debt of $A350 million became more expensive.
Forsyth Barr broker Tony Conroy said a "deep discount" was always expected on the price, considering Nuplex wanted to raise $110 million while having a capitalisation of $88 million, which meant new shares would have a "massive" diluting effect.
"It is still a well run company, but is hitting hard times in the resin market, with the fall in consumer discretionary spending," Mr Conroy said.
Mr Conroy said given the discount to 50c per share, Nuplex was likely to want more than $110 million.
However, he noted institutional investors saw the $110 million as "a bit skinny" to cover the remaining banking covenants.
This further raised speculation Nuplex would have to go back to the market later in the year for more capital-raising, which would again dilute share value, he said.
"The 50c per share is a big discount [compared] to the $1.07 per share at the time it went into a trading halt," he said.
