No matter the final share price and volume of the deal, Caja Madrid, Bancaja and the other five cajas that comprise Bankia have taken control of the banking conglomerate Bankia. That said, this possibility would only present itself if the conglomerate sells at the maximum range of the deal, which would bring the investment to 4.5 billion euros. This assumption has to be colored by two unknown factors: the exact share price and total volume of that the sale will bring are both unclear.
The discount on book value is somewhere within a wide price range. Amounts between 49% and 54% suggest that the shares will hit the market between 4.41 and 5.05 euros.
These valuations show how one of the most important savings bank in the country´s financial domestic market capitalization ranges from 7.641 billion to 8.749 billion euros. Figures at the top of this range equal the total value of Popular and Sabadell?s IPOs.
What Bankia earns during the deal (as a function of the sale price going from 3.636 billion euros to 4.580 billion euros while the firm?s objective is to capture about 3.6 billion euros) would provide them with a margin of more than two points above the 8% required by Spain?s new solvency requirements.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
