State Gas (ASX:GAS) has seen its shares drop by as much as 11.1% to A$0.16, marking their lowest value since October 5th, 2018.

The Australian gas firm has recently announced the completion of a A$5 million placement at A$0.15 per share.

This issue price indicates a discount of 16.7% compared to the closing price of A$0.18 on July 31.

This led to the company posting one of their biggest intra-day drops since May 29.

Year to date the stock has fallen 23.4% as of the last close.

State Gas develops and operates energy assets, with a key focus on the production of gas.