After being suspended several times, the title closed down 42.11% at 9.90 euros, in a market up 0.70%.
The title of the Italian bank Monte dei Paschi di Siena (MPS) continued its dizzying fall on the Milan Stock Exchange on Friday, pending the launch on Monday of its capital increase of 2.5 billion euros.
After being suspended several times, the title closed down 42.11% at 9.90 euros, in a market up 0.70%. The capitalization of MPS melted to 99.2 million euros.
The action began to collapse Thursday after the publication of the conditions of the capital increase, described by the bank itself as “hyperdilutive”.
The operation will have the effect of greatly reducing the share of shareholders who do not subscribe to the capital increase, hence their propensity to sell their shares before Monday.
The bank of Siena will issue a maximum of 1.25 billion ordinary shares at a subscription price of 2 euros, on the basis of 374 new shares for every three held.
The capital increase received the green light on Friday from Consob, the Italian stock market policeman, who warned that “during the period of offering new shares”, there was a risk of “high volatility in the share price. ‘stock”.
MPS is seeking to strengthen its equity and finance its 2022-2026 strategic plan, which notably provides for 3,500 voluntary departures to reduce its costs.
The operation is “subject to a high execution risk, given the reduced capitalization of the bank and the delicate national and international macroeconomic situation”, estimated the ECB, quoted in a press release by MPS.
Considered the weak link in the Italian banking system, the Siena bank will thus launch its seventh capital increase in fourteen years.
The Italian Ministry of Economy, which had bailed out the ailing bank to the tune of 5.4 billion euros in 2017, thus becoming its main shareholder (64.23%), will provide 1.6 billion euros.
The French insurer Axa, commercial partner of MPS since 2007, could become the first private subscriber with a contribution of up to 200 million euros, according to a financial source.
Another partner of MPS, the Italian asset management group Anima has announced a stake of up to 25 million euros.
A consortium of eight banks has agreed to take over unsubscribed shares up to 807 million euros.
The Monte dei Paschi Foundation, former majority shareholder of MPS, is making a comeback with a stake of up to 10 million euros, announced by the mayor of Siena, Luigi De Mossi.
The bank had settled a dispute with the foundation in August 2021 by paying it 150 million euros. The organization had originally sought damages of 3.8 billion euros because it felt particularly harmed by the disastrous acquisition in 2007 of Banca Antonveneta.