BlueScope Steel Ltd has sold around 340 million Australian dollars of the proposed A$600 million capital raising to institutions globally at a price of A$0.40 a share, the media reports said.

The flat product steel producer said, the underwriters were left with A$70 million shortfall in the raising, partly due to shareholder eligibility issues and the impact of an A$8.3 million placement, but those shares have already been sold.

At 40 cents each, the new shares come at a 34% discount to their last trade of 61 cents, the company added.

Chief Executive Paul O’ Malley said, “BlueScope Steel’s earnings continue to be impacted by the ongoing environment of a high Australian dollar, low steel prices, high raw material costs and softer demand conditions in Australia.”  He also added, “The entitlement offer will result in a more appropriate capital structure for the company.”

BlueScope Steel is a flat product steel producer with operations in Australia, New Zealand, Asia, the Pacific and North America. The company was spun off from BHP Billiton in 2002 as BHP Steel and renamed Blue Scope Steel  in 2003.

The company’s corporate headquarters are located in the Bluescope Steel Centre in Melbourne.