Kathmandu owner holds capital raising at steep discount

Kathmandu's owner KMD Brands is offering shares at a massive discount in order to raise funds. (Dean Lewins/AAP PHOTOS)

The Kiwi company that owns Kathmandu and Rip Curl will raise funds at a deep discount in an effort to stabilise its money-losing business after lenders baulked at extending the retailer more financing.

KMD Brands announced on Tuesday it would conduct a $NZ65.3 million ($54.5 million) equity raising at just 6 NZ cents per share, a 69.2 per cent discount to its last traded price.