CB Richard Ellis will raise $180m (£121m) of new equity from a sale of shares.

The New York-listed property services firm said yesterday that the sale of 50m new shares, which is underwritten by Credit Suisse, its main lender, and Banc of America, was priced at $3.77 a share.

This is 47% lower than the $7.10 price at which CBRE’s shares were trading before news of the share issue was announced on Monday.

The amount of equity raised could increase to $207.1m (£140m), if the underwriters exercise their option to buy an additional 7.5m shares.

The sale of shares to the public comes after a planned private placing of shares was abandoned last Saturday.

CBRE said the proceeds of the share issue would be used ‘for general corporate purposes, which may include the repayment of principal of revolving credit and term loans under our senior secured credit agreement’. CBRE’s total debt is $2.66bn (£1.7bn).

CBRE is also considering asking its lenders to alter the loan-to-value covenants on its debt to provide ‘additional covenant cushion’