The contractor’s shares have slumped nearly 65% from the 52-week high of 1,167p to just 408p at the close of trading yesterday.

Investors confidence has taken a turn since Kier reported June year-end net debt stood at £186m, then described as at a controllable level.

Since then the financial position has deteriorated with Kier chief Haydn Mursell reporting debt at the end of October up to £624m.

The rights issue is expected to go through on 20 December raising £250m after costs, which will be channelled into reducing debt and speeding-up payments to subcontractors.

Yesterday’s trading saw shares dip below the rights issue price of 409p. At the time of last Friday’s  announcement, this had represented a 34% discount on the share value.

While the rights issue has been underwritten by banks HSBC, Santander, Peel Hunt and Citigroup, they could face buying shares now above the market price.