Big interest in Piraeus Bank stake
Quality of investors and strength of demand to determine success of divestment process
The extra strong interest in the placement of the Hellenic Financial Stability Fund’s stake in Piraeus Bank, displayed from the first day, on Monday, has led to the sale of the entire holding of the state in the lender and at the top end of the price range, as offers exceeded 6 billion euros.
The range of the offering price was set by the HFSF between €3.70 and €4 per share and the strong demand that occurred already in the first hours led it to the decision to sell its entire participation in Piraeus Bank – i.e. 27%, instead of the 22% with which the public offering opened on Monday.
In the next two days, until the offers book closes, the final sale price will be reached. Kathmerini understands that on Monday demand moved between €3.80-3.90 per share – i.e. above the threshold of €3.70 set by the HFSF.
A key question is also the quality of the investors, that is, whether and to what extent demand will come from long-term investors or shorter-term investors and hedge funds.
The distribution of the offered shares has initially provided for 15% to investors participating in the Greek public offering, and 85% to investors participating in the international offer, while 30% of the Greek offer will be allocated to private individuals.
HFSF sources point out that the oversubscribed book building process signals “the constantly renewed confidence of foreign investors in the Greek economy and its businesses, and in particular in the banks.” As noted, “the divestment from Piraeus comes at the ideal time and in terms of the bank’s performance, which confirms the complete consolidation and impressive return to growth and profitability, as a result of the long-term and systematic work done by the bank’s management in collaboration with the HFSF.”
In the last quarter of 2023 Piraeus Bank recorded the strongest financial results in its history, generating €0.25 earnings per share and 20% return on equity, leading the corresponding annual figures for the entire 2023 to €0.80 and 17%.
