Spain’s Bankia looks for €4.2bn in float to steady Eurozone fears
SPANISH lender Bankia plans to raise up to €4.2bn (£3.8bn) in a steeply discounted initial public offering (IPO) that will be seen as a key test for Spain’s overhaul of its financial sector.
Spain’s biggest savings bank, formed from seven savings banks or “cajas”, has set the price range for the flotation at €4.41 to €5.00 per share, around half of book value.
The lender, which last week delayed the publication of its prospectus, will set the final price for its shares on 14 July and make its stock market debut on 18 July.
Bankia is looking to sell 824.6m shares to raise up to €4.2bn, which could rise to as much as €4.6bn if an over allotment option is exercised.
A smooth listing of the caja would lend support to the Spanish government’s overhaul of the banking sector and would be viewed as a bellwether moment for the future of the Eurozone’s banks.
Led by chief executive Francisco Verdu (pictured), Bankia must raise the capital to meet strict new solvency levels set by the Bank of Spain and is plowing ahead with its stock market listing despite tough market conditions for IPOs and a fresh crisis of confidence in the Eurozone.