Since the company announced a fully underwritten $237 million six-shares-for-one (existing) rights issue last week, shares initially peaked at $1.18 but had fallen through the previous record low of 74c to close at 50c yesterday.
PGC shares had traded at $3.65 last October.
Craigs Investment Partners broker Chris Timms said while some investors might be selling their entire stake, many were likely selling down two-thirds of their present holdings to use that cash to take up the rights issue on their remaining 33% of stock.
Usually, up to 150,000 PGC shares changed hands daily, but more than a million a day had been sold since late last week and 1.8 million were sold yesterday.
Mr Timms said while PGC management would be concerned at the loss of market capitalisation, irrespective of the share price, the cash from the rights issue was "in the bank" being fully underwritten.
"PGC is going to be in a stronger position after the rights issue, with $237 million cash, less debt and less funding costs," he said yesterday.
Wealthy Canterbury families were reported by NZPA yesterday to have been among those shedding the PGC stock.
"It is a very old register. The Christchurch families' share wealth has been absolutely devastated," a broker said. "I'd say a lot of them are in shock."
While a new company was said to be emerging from the recapitalisation process, that company was unproven, the broker said. Media were excluded from a PGC shareholder meeting yesterday.
