With… good morning, the amount requested by the HFSF for 27% of Piraeus Bank was covered. The offers have already exceeded 4 billion euros, with investors from Greece and abroad rushing en masse to place themselves in the bank. Everything shows that the total offers will exceed the amount of 8 billion euros
At ten in the morning, the bid books were opened for the disposal of 27% of Piraeus Bank shares by the Financial Stability Fund (HFS). According to the prospectus approved yesterday, the two books concern institutional portfolios abroad, as well as domestic and specialist investors in Greece.
With the success of the venture discounted by the market, the procedure for the withdrawal of the State from the systematic bank begins in essence,
The books will close next Wednesday at 4pm.
Financial Stability Fund: These are the terms of the Piraeus placement
The terms of the placement
According to the terms of the placement, 22% to 27% of the bank’s shares will be made available, at a price range between 3.7 and 4 euros per share.
In other words, the sale will take place either at a low discount, up to -7.2%, or even at a marginal premium, compared to last Friday’s closing on the ASE (3,986 euros).
The final price will depend on the demand that will manifest itself in the next three days and will apply to all investors in Greece and abroad.
Based on the prospectus, the allocation of 25.3% of the bank’s shares will be as follows: 85% will end up with institutional investors through the international offer and 15% through the Greek book.
However, the HFSF has the right to increase the offer by 62.51 million shares, which correspond to 1.7% of Piraeus’ share capital, if the full liquidation of the public participation (27%) is qualified.
In this case, the distribution will be as follows: approximately 88% of the HFSF shares will be allocated abroad and the remaining 12% in Greece.
Strong demand
According to banking sources, the demand that will be manifested is expected to be strong, exceeding the supply, based on the contacts of the HFSF advisers with investors in the previous 24 hours.
“The issue is not whether all the shares of the HFSF will be allocated, but what will be the degree of overlap”, they argue.
As they say, the offers are expected to move in the zone of 8-10 billion euros, with the overcovering reaching or even exceeding 8 times, moving at levels corresponding to the recent placement for 22% of the shares of the National Bank.
With these data, the goal of zero state participation in the bank will be achieved, with revenues for the public ranging between 1.25 and 1.35 billion euros.
This is the second largest privatization in Europe through a public offering since 2017.
According to analysts, the strong results of 2023, the prospects for the net profitability of the period 2024 – 2026, which according to the management of Piraeus will cumulatively approach 3 billion euros and its return to the era of dividends, make the Greek group an attractive investment option.
It’s the National team’s turn
After the completion of the placement, the HFSF will have successively withdrawn within a few months from the share capital of Eurobank, Alpha Bank and Piraeus Bank and will own only 18% of National Bank after the successful placement of last November for 22% of shares.
In this context, the start of the process for the remaining shares in NBG is expected as soon as possible.
It is estimated that by autumn, the full privatization of the big four in the industry will be completed. And that’s because:
First, the Greek government is called upon to capitalize on the positive momentum to send another signal of a return to normality in the banking sector
Secondly, there is always the risk that conditions in the markets will deteriorate, making the terms of disposal of the National Bank share package more difficult
Third, there cannot be two speeds between system groups. All banks should return to the private sector, as the participation of the HFSF in their share capital implies a series of rights for the public, which act as a deterrent to the further expansion of the investment base.
Fourth, upcoming changes to the criminal code will remove the immunity of bank executives
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