The 500 million capital increase is not off to a good start Cattolica Insurance. In the morning, the company's stock on the Stock Exchange was targeted by sales, until it was suspended in the volatility auction with a theoretical red of over 12 percentage points. In the early afternoon, the shares, readmitted to trading, decreased by 11,4%, to 5,38 euros. Previously the quotation had slipped to a minimum of 5,325 euro, a level it had not seen since July 2012. Banca Imi cut the target price on the stock from 15,30 to 7,81 euro, confirming the hold rating.
THEcapital increase, which will end on 27 November (with the rights negotiable until 21 November), concerns over 117 million shares offered at a price of 4,25 euro (with a 37,01% discount on the Terp, the theoretical price of a share after the detachment of the option right relating to the capital increase). The total value of the operation is close to half a billion euros. As for the exchange, the newly issued shares will be offered in the ratio of 21 new ordinary shares for every 10 shares held.
According to some analysts the operation will entail a 64% dilutive effect on earnings per share. The company, for its part, made it known that the recapitalization aims at several objectives: supporting business growth, financing industrial transformation and investments in innovation and technology and seizing acquisition and partnership opportunities.
Before the start of the increase, the CEO of Cattolica, Giovanni Battista Mazzucchelli, had said that the roadshow had "gone well: there was excellent acceptance by Italian and foreign analysts". The manager said he was confident "that the increase can be concluded in the best possible way".
