Bankia, the merger of Caja Madrid and Bancaja, went public yesterday. The share price closed even for the day, while the titans of the Spanish banking system rallied more than 4%. The deal?s symbolic importance is greater than this uptick.
Specifically, it shows how crippled Spanish savings banks can restructure in order to survive.
Although Bankia´s share price vacillated throughout the day, they were able to sell 3.1 billion euros worth of shares during what their president called a "perfect storm."
This amount is more than enough to bolster its capital requirements of 1.8 billion euros. Seeing that the debt sale was strategic, it´s no longer necessary to take a look at its capital. Bankia has brought together some of the wealthiest people and largest companies in Spain.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro.
