Following the triumphant conclusion of the Piraeus Bank shares placement last Monday, Minister of National Economy and Finance, Kostis Hatzidakis, voiced his confidence in the bright prospects ahead for the Greek banking sector.
The minister stated “Our banking system is turning a new page starting today. From the era of crisis and recapitalizations, we are now entering a period where high-quality investors are expressing, as evidenced in recent months, their interest in all systemic Greek banks.”
The Hellenic Corporation of Assets and Participations (HCAP) has successfully raised around 11 billion euros, securing a 27% stake in Piraeus Bank, according to an official announcement. The price was set at 4 euros per share for both Greek and foreign investors participating in the placement.
Ilias Xirouchakis, CEO of HFSF, expressed astonishment at the overwhelming response to the Piraeus Bank participation, which exceeded expectations significantly. The international book was oversubscribed approximately 9 times, the Greek book 4 times, and the total offer approximately 8 times.
The achievement of placing 27% of Piraeus Bank shares to both foreign and Greek investors is unparalleled. The investment interest was eight times higher than the offer, and the prices offered were set above the closing price of the Stock Exchange last Friday, which is highly unusual globally. This is extremely rare worldwide, as in such cases of mass share placements, prices are almost always set at a discount to buyers.
The minister also emphasized the challenging circumstances Piraeus Bank faced in 2019, highlighting the significance of today’s success.
In conclusion, Kostis Hatzidakis emphasized the government’s dual role in the new era for the banking system: ensuring conditions for a resilient banking system and fostering competition among banks, akin to practices in advanced European nations.
