The 64 per cent fall had the share price close at $1.24, less than the $1.25 a share offer made to small investors to raise $102 million. This is in addition to the $204 million raised from institutional investors at the same price during the trading halt.
Under the new retail share issue, shareholders will be offered one new share for each existing share at $1.25, the company said.
But the retail entitlement offer is not underwritten, meaning there is no guarantee all, or indeed any of the $102 million will be raised.
The institutional placement and offer "significantly enhances'' Transfield's capital position and balance sheet, the company said.
Transfield said it had refinanced its Australian dollar debt facility, with the establishment of a new $561.72 million debt facility.
The move reduces the effect of the exchange rate on Transfield's debt compliance and extends debt maturities to January 2012.
Chairman Tony Shepherd said the measures helped deliver on a commitment made to shareholders to improve the balance sheet.
"The institutional equity raising, together with the debt restructuring initiatives, establish a strong capital position to promote sustainable organic growth from the delivery of essential asset and project management services,'' he said.
"We have established a multi-sector, multi-regional business with a common platform.
"As outlined at our AGM in October, we are continuing to diligently manage our capital structure and build up our balance sheet as a priority.''
Managing director and chief executive Peter Watson chipped in in an attempt to reassure investors.
"We have a strong and sustainable business model,'' he said.
"We provide essential stayin-business operations and maintenance services to a long-term government and blue chip client base.''
Neither statement reassured the market, which took a dim view of initiatives intended to beef up the Transfield balance sheet.
Share market 2pc higher at noon
Share market higher at noon
Federal money tempts community banks
