Shares of Invictus Energy Ltd (ASX: IVZ) have had a horror week and now trade 25% in the red at 20.5 cents apiece.
Selling pressure has continued in today's session, with shares trading more than 2% down at the time of writing.
In broader market moves, the S&P/ASX 200 Energy Index (ASX: XEJ) has climbed around 160 basis points into the green today.
What's up with the Invictus Energy share price?
After the company entered a trading halt last week, it later confirmed a $12 million private placement to new and existing institutional and sophisticated investors.
The company issued around 60 million fully-paid ordinary shares at an issue price of 20 cents per share. At the time, that represented a 27.3% discount to Invictus' closing price of 24.5 cents on 18 May.
Those involved with the placement also received options giving the right to two Invictus shares at an exercise price of 35 cents.
Investors ran for the hills following the announcement and dumped their Invictus shares along the way seeing as the placement is set to dilute existing shareholders by a considerable amount.
Since the company release, trading volume of Invictus shares surged, albeit tilted towards the sell-side. Today's volume is also at 91% of the 4-week average of 6.3 million shares – roughly 1% of the company's entire float.
News Invictus had "executed a binding well services contract with Baker Hughes for its basin opening drilling campaign in the Muzarabani-Mbire area of Zimbabwe" wasn't enough to entice investors to jump back aboard the gravy train yesterday either.
The contract is scheduled to commence at the end of July 2022, Invictus says, however it appears to be a bittersweet note for those shareholders currently diluted to the tune of 60 million shares.
In the last 12 months, the Invictus Energy share price has soared well into the green having clipped a 33% gain in the time.
This year to date, the stock has shown its teeth even more but has reversed course sharply on more than two occasions following market-sensitive updates.
It now trades 30% below its former highs in May.
