China New Energy shares dive after £750,000 subscription

Shares in China New Energy dived almost a quarter as the AIM-quoted outfit raised £750,000, primarily to accelerate its field work in Africa and meet early project milestones.

The hike, via a subscription of 37.5m shares at 2p each, would also place China New Energy favourably for investing in current projects or chasing new investment opportunities, it said.

At 12:37 BST, share in the engineering and technology solutions provider to the bio-energy sector were down 22.22% to 2.1p.

"Whilst oil prices are forecast to remain low, it is our belief that bio-energy projects will continue to be developed in emerging markets due to the job creation and environmental benefits," the company said.