Saipem shares fall below issue price as banks prepare to sell shares


A Saipem logo is seen on the deck of the deepwater drilling vessel Saipem 10000 in the port of Genoa, Italy, November 19, 2015. REUTERS/Alessandro Garofalo

Join now for FREE unlimited access to


MILAN, July 15 (Reuters) – Shares in Saipem (SPMI.MI) fell below the issue price of the new shares on Friday in a hyper-dilutive fundraising call that fell short of 2 billion Euro ($2.01 billion) target Italian energy services company sought investors to shore up its finances.

As of 10:00 GMT, shares listed in Milan were down 26.5% at 0.86 euros, while Saipem sold its new shares at 1.013 euros each.

The company said on Friday that underwriting banks had completed the purchase of new shares, worth nearly 600 million euros, which remained unsold after raising just 70.4% of the amount targeted in the raise. capital. Read more

Join now for FREE unlimited access to


Banks will now start selling Saipem shares, but with so much participation and a falling market price, the process may not prove easy.

Bestinver analyst Marco Opipari said general market conditions were not favourable.

“Banks can afford to sell shares even below the issue price, but not too much, because they would wipe out what they earned with fees,” he said.

“If the conditions aren’t good enough, the banks could suspend the selling process, but every time the shares approach 1.013 euros, they will restart the selling, so we can consider that as a ceiling for the moment.”

The banks share some 51 million euros in costs for having participated in the capital increase of Sapiem, according to the prospectus of the operation. The total cost of the cash appeal, including other costs, has been estimated at a maximum of 80 million euros.

BNP Paribas, Citigroup, Deutsche Bank, HSBC, Intesa Sanpaolo and UniCredit were the global co-coordinators of the Saipem issue. ABN AMRO, Banca Akros, Banco BPM, Banco Santander, Barclays, BPER, Goldman Sachs International, Société Générale and Stifel were named joint bookrunners.

On Friday, Unicredit said it, BNP Paribas, Citigroup, Deutsche Bank, HSBC, UniCredit, ABN AMRO, Barclays and Stifel, which now own nearly 400 million Saipem shares, had reached an agreement to reach a sale.” orderly” of their participations.

The stake corresponds to 67.8% of the shares bought by the banks and approximately 19% of the amount referred to in the call.

After a surprise earnings warning in January, which led the company to seek funds from investors, Saipem presented a new business plan in March.

As part of the strategy, the group, controlled by energy giant Eni (ENI.MI) and Italian public lender CDP, has promised to cut costs, sell assets and focus more on its business. offshore engineering and construction (E&C). find out more ($1 = 0.9975 euros)

Join now for FREE unlimited access to


Reporting by Giulio Piovaccari Editing by Keith Weir

Our standards: The Thomson Reuters Trust Principles.


Comments are closed.