ECONOMY

Greek banks’ shares sales said to draw bids at lowest price

greek-banks-shares-sales-said-to-draw-bids-at-lowest-price

National and Piraeus banks are drawing orders from investors at the lowest price at which they’re allowed to sell shares, according to people familiar with the capital increases.

Pricing at that level could mean discounts of more than 90 percent compared with the stocks’ market prices, said the people, who asked not to be named because order-taking continues and bids may still come in at higher prices.

Alpha Bank, which is also selling stock, has received orders for all the shares that are up for sale, said chief financial officer Vassilios Psaltis.

Eurobank, National Bank and Piraeus have yet to cover the share sales, two people said.

They added that investors so far are reluctant to place orders and the success of the exercise will depend on whether the country’s government strikes a deal with creditors this week.

“The market is placing a lot of emphasis on whether the Greek government can reach an agreement with Europe to clear the way for more funds,” said George Athanasakis, equity sales director at Pantelakis Securities in Athens.

“That doesn’t make for a very optimistic mood in which to seek new investors. Share prices have come down a lot, which points to a big dilution for existing shareholders.“

[Bloomberg]