Power utility PPC’s equity capital increase, announced last Friday, will be staged as a free market offer (FMO) procedure with accelerated book building, meaning that the discount at which the equity capital increase will be held will be determined by the offers to be submitted to the issue’s book.
Also, PPC will be able to announce a bigger equity capital increase should oversubscription be achieved.
The administration’s decision to opt for an FMO procedure rather than a customary method of pre-determined prices is expected to create competition among participants, which could produce a better result, both in terms of the discount and funds to be drawn, officials explained.
PPC will be able to revise, upwards, its 750 million-euro equity capital increase if the procedure is oversubscribed, the officials added.
The power utility’s administration began talks with prospective participants of the equity capital increase last Friday and will continue these talks until the end of October, when the book building procedure will commence.
PPC is aiming to attract 750 million euros. The procedure will result in a decrease of privatization fund TAIPED’s current stake in the company from 51 percent to 34 percent.