(Finance) – Collapse in Piazza Affari for Saipemwhich fell below 900 million in capitalization, after the board of directors of the services and solutions company for the energy and infrastructure sector resolved to increase the share capital indivisibly for an amount of 2 billion euro and approved the final terms and conditions of the same. Borsa Italiana pointed out that “the capital increase operation is qualified as highly dilutive“.
In the press release with the details of the transaction, Saipem highlights that the capital increase is inseparable and, therefore, it will be perfected only if fully signed for the amount of 2 billion euros. The inseparable nature “responds to the purpose of allowing Saipem to reach a level of capitalization deemed appropriate for the purpose of overcoming the situation of economic, equity and financial tension”, which occurred after the profit warning in January.
The issue price of the new shares incorporates a discount of approximately 30% with respect to the theoretical ex-law price (TERP) of Saipem ordinary shares, calculated as of 21 June. “The investors who had acquired the option rights during the offer period they could realize a loss equal to the investment made for the acquisition of these rights “, underlines the company.
“The stock will be subject to high volatility because those who intend to subscribe the rights will have to cover themselves by Friday, while those who do not want to are forced to sell them. The increase is hyper-dilutive and, moreover, concerns the fact that it has been emphasized that it is inseparable and that in the very remote case in which it is not fully subscribed, there will be no delivery of the shares and the investor could realize a loss for the acquisition of these rights, “Bestinver analyst Marco Opipari told Reuters.
Downhill Saipemwhich stands at 35 euros per share, with a drop of 16.73%. The stock has fallen by 60% since the beginning of 2022. An extension of the bearish phase is expected for the rest of the session with a support area seen at 33.47 and later at 31.94. Resistance at 37.27.