Fletcher Building looks to raise $700 million

Fletcher Building has announced it will raise $700 million to pay back debt and improve its financial stability.

The troubled building products and construction company is struggling with poor demand as house sales are down.

It is looking to raise $282m from investment funds and $418m from current shareholders. It went into a trading halt on the stock exchange to do so.

In addition to money raising Fletcher Building plans to cut around $180m in costs to better the books.

Shares in the company were $2.40 each on Monday morning, a 13 percent discount from market close on Friday.