Tenaga Nasional Berhad (TNB) shares have declined to its lowest level since October 2015 after Khazanah Nasional sold 85 million units at RM12.33 apiece.

Khazanah’s sale saw RM2.5 billion erased from TNB’s market capitalisation, according to terms for the deal obtained by Bloomberg.

According to The Edge Markets, TNB shares were offered at RM12.33 to RM12.58 each.

Following the sale, shares immediately dropped 2.4 percent to RM12.28 at 9.34am.

By midday, it was down 44 sen to RM12.24 sen.

The 44 sen decline wiped out RM2.50 billion from TNB’s market capitalisation, reducing it to RM69.03 billion.

Khazanah was the largest shareholder in the power giant at 28.76 percent or 1.635 billion shares prior to the sale, and remains the largest shareholder by a wide margin even after the sale.

This is followed by the Employees Provident Fund with 14.05 percent, while Skim Amanah Saham Bumiputera owns 9.10 percent and KWAP 5.45 percent.

The sale comes after TNB posted its first quarterly loss in more than seven years, which was attributed to higher operating cost and increased impairment of financial instruments.

Net losses in the three months ending Dec 31 last year amounted to RM134 million.