Europe’s oil-service firms brace for stock discounts

European oil-service companies, stung by crude prices at 12-year lows, may be forced to sell new shares at a substantial discount to win investor backing as finances dwindle.

France’s CGG won shareholder approval this week to raise capital, while Saipem has said it may sell new stock this quarter, while Seadrill, Vallourec, and Bourbon could also seek investor funds, according to Societe Generale.

“The key participants in any rights issue will be the existing shareholders,” said Nicholas Green, an analyst at Sanford C Bernstein in London.