Home Headlines Shares in Monte dei Paschi plunge 14% after capital raise
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Shares in Monte dei Paschi plunge 14% after capital raise

by uma

MILAN (Reuters) – Shares in Monte dei Paschi di Siena plunged 14% on Friday, triggering an automatic trading suspension, after the state-owned bank successfully completed a 2.5 billion euro ($2.4 billion) capital raise.

Monte dei Paschi said late on Thursday its new share issue had been 96.3% subscribed, with underwriters taking up the remaining 93 million euros.

Monte dei Paschi has been forced to price the new shares at an unusually small discount, because of its shrunken market value compared with the cash call’s size.

Analysts had forecast the shares would fall once they started trading to bring valuation multiples in line with those of peers.

($1 = 1.0233 euros)

 

(Reporting by Valentina Za; editing by Agnieszka Flak)

 

You may also like