Piraeus Bank’s books will open this morning at 10 am with the Hellenic Financial Stability Fund (HFSF) placing its 27% stake in the bank, which is expected to draw substantial 8-10 billion euros in offers.
The move is significant because it means the bank will finally return to the control of the private sector after it was granted emergency aid stemming from the 2008 sovereign debt crisis.
The HFSF approved the amount of shares to be offered as well as the price of shares in a meeting over the weekend.
In detail, 22-27% of shares will be offered at a price range of 3.7-4 euros, which is at a discount of 7.2% from Friday’s closing price of 3.986 euros per share.
According to the official announcement, the HFSF will float 25.3% of shares, 85% of which will go to institutional investors and 15% to private investors, and reserve the right to up the offer another 1.7% dependent upon demand.
Reports note that demand for Piraeus Bank from institutional investors remains high and market sources told OT that “the issue isn’t whether or not demand will be covered, but rather the level of oversubscription.”
Analysts expect offers to range between 8-10 billion euros, which would mean at least a 4-fold oversubscription.
As a result of the placement, the Greek state is expected to bring in 1.25-1.35 billion euros, and will only hold an 18% stake in the National Bank of Greece, as it has already placed its shares in Eurobank, Alpha Bank, and a portion of its holding in the National Bank of Greece.
