The board of directors of Greece’s National Stability Fund has decided on a narrower price range for the placement of the National Bank of Greece. In a press release, the Fund announced that the new price range for the international offering is set between 7.40 and 7.65 euros per offered share, now designated as the “Narrow Price Range.”
The Fund also highlights that the managers of the international offering have received demand orders that exceed the offering shares in the Narrow Price Range by multiple times.
The managers of the international offering are set to notify participating investors that any bids falling below the lower threshold of the Narrower Price Range will be excluded from the allocation of the offered shares.
Analysts point out that that the revenue from the sale is not the only stake in this endeavor. Equally crucial for the stock market performance of the National Bank of Greece will be the selection of investors chosen.
Typically, more aggressive funds submit bids at the highest possible price, in contrast to more quality-oriented, long-term schemes that offer less.
It remains to be seen what the profile of the new shareholders chosen by the Fund will be, in relation to the revenue it will earn.
In a reasonable scenario, the seller is expected to receive more than 700 million euros for 10% of the bank’s shares, compared to 1 billion euros received during the disposal of 22% last November.
The National Bank of Greece is one of the four systemic banks in the country. The others are Piraeus Bank, Alpha Bank, and Eurobank.
