Banca Cívica was not forced to lower its market valuation in order to go public like Bankia was, considering that it had a greater margin to maneuver. In other words, the lender had to make concessions and settle for the low band of the price range of its shares to be able to be valuated in the markets after tomorrow.
The group presided by Enrique Goñi and Antonio Pulido set its value at 2.7 euros per share, the minimum of the price range. The maximum was around 3.8 euros. So the discount on book value reached 59% after the placement and 73% beforehand. This shrinking is similar to what Bankia did in order to proceed with its IPO.
At this price, Banca Cívica will capture 671.6 billion euros if the global managers finally exercise their right of purchase worth an additional 10% of the shares. First of all, the foreseen earnings, which remains around 600 million or 30% less than the original 850 million predictions. If the ?green shoe? is included, this is 21% less.
Banca Cívica may need 847 million to meet solvency demands, but their IPO deal (by which aims to sell more than 20% of its capital) would mitigate proprietary capital requirements since in March Bankia?s risk allowance was greater than 8%. With this amount of capital raised, its risk allowance is up to 9.6%.
During the sale process, Banca Cívica´s shares were oversubscribed by clients. In the weeks before the deal, the lender benefitted from an introductory deposit that was linked to the share sale price at a payback rate of 4%.
