Bell Potter Securities has been forced to fork out nearly $10 million for new shares in Port Bouvard after developer's $23.8 million four-for-one rights issue came up short.
Port Bouvard received offers from existing shareholders for only 58 per cent of the 2.4 billion new one cent shares on offer.
As the underwriter, Bell Potter will have to take up the balance, along with sub-underwriters, Hong-Kong based Sun Hung Kai Investment Services and Sydney-based Regal Funds Management.
Port Bouvard will have nearly three billion shares on issue once the new shares begin trading on Wednesday, January 30.
The $23.8 million rights issue is part of a broader recapitalisation plan for the struggling developer which includes a new $35 million unencumbered debt facility with St George Bank.
Shares in the company were untraded at 1.1 cents at 10.20am.