It's D-Day Banca Carige. The Ligurian institute kicks off today a hyperdilutive capital increase of 560 million euros and investors are already in fibrillation.
At the beginning of the trading session, actions and rights of Banca Carige they were unable to set a price, then they entered into negotiations with the share rising (even reaching +11%) and the right falling. After a few minutes the action turned negative and was suspended again with a theoretical decrease of 5%. On Tuesday, the title had achieved a maxi rebound of 53,26% after the collapse of 37,5% archived in view of the increase.
The recapitalization cashed yesterday the green light from Consob to the prospectus, which was published this morning. In the text, the Institute explains that there are three supervisory inspections in progress and that Consob itself conducted inspections between March and July, the results of which have not yet been disclosed. Therefore “it is not currently possible to exclude that, in relation to the conclusions of this inspection activity, the issuer should assume further initiatives aimed at filling the identified shortcomings".
The document then specifies that the ECB he cast doubts on Carige's ability to generate profits and operate as a stand-alone bank.
The prospectus also shows that the main shareholders of Carige they agreed to subscribe 128,47 million of the increase. The remaining 369,5 million under option are not guaranteed in full, but only for 234,4 million. Of these, 69,5 would come from Malacalza Investimenti (which will also subscribe to the increase for its 17,587% stake) and 130 from investors who have signed first allocation guarantee agreements with Equita Sim. The uncovered part of the increase is 135 million.
The cost of the operation, which includes commissions to underwriting syndicate members and Equita Sim, is estimated at approx 51,7 million gross of the tax effect. Of these, 14,7 million will be paid by the issuer regardless of the completion of the capital increase.
