Athens bourse suspends trading in Piraeus Bank shares to allow for reverse split

Trading in Piraeus Bank shares on the Athens stock exchange was suspended on Wednesday to allow for a reverse split.

Piraeus will issue new stock to plug a 7.33 billion-euro capital hole, aiming to raise at least 10 percent from private investors to retain management control.

Piraeus will launch a 35.6-for-1 rights issue at 1.7 euros a share, adjusted for a 1-for-10 reverse share split, to raise up to 6.94 billion euros. Another 400 million euros will be raised via a private share placement.

Rights will trade from June 11 to June 18 and the subscription period for the offering will run from June 11 to June 25.