Saipem shares plummeted below the issuance price for new equity in a cash call that fell short of the $2.01 billion aim.
Saipem sold new shares at 1.013 euros apiece, 95 for every regular or savings share owned. Milan-listed shares fell 25% to 0.874 euros by 0830 GMT.
Underwriting banks purchased new shares worth roughly 600 million euros that were left unsold after Saipem raised only 70.4% of the planned amount in the capital increase.
The Saipem issuance was coordinated by BNP Paribas, Citigroup, Deutsche Bank, HSBC, Intesa Sanpaolo, and UniCredit. ABN AMRO (AS:ABNd), Banca Akros, Banco BPM, Banco Santander (BME:SAN), Barclays (LON:BARC), BPER, Goldman Sachs (NYSE:GS), Societe Generale (OTC:SCGLY), and Stifel were joint bookrunners.
Banks will sell Saipem shares soon. With so much at stake and a sliding market price, it won’t be simple.
Unicredit (BIT:CRDI) stated that BNP Paribas, Citigroup, Deutsche Bank, HSBC, UniCredit, ABN AMRO, Barclays, and Stifel had agreed to “orderly” sell the shareholding.
The stake represents 67.8% of bank-purchased shares and 19% of the call’s goal.
$1 = 0.9975 euros