The share price of main power utility PPC plunged 47 percent, to 2.03 euros from 3.83 euros, during the first hours of trading today, as had been anticipated following last week’s finalization of a split by subsidiary IPTO, the power grid operator, from the parent company.
The share price of the IPTO holding company rose by 8.96 percent during this time, to 2.31 euros, with a capitalization value of 473 million euros.
Adding up the values of the two shares actually leads to a relative increase in terms of capitalization and total share value. The values of the two shares totaled 4.33 euros, up from PPC’s share price of 3.83 euros at the beginning of today’s session. Analysts see this as promising sign for the mid-term prospects of both the PPC and IPTO shares.
Trading of PPC’s share had been suspended over the previous two sessions. SGCC (State Grid Corporation of China) has acquired a 24 percent stake of IPTO.
If the market factors in PPC’s company value without IPTO, then the utility’s share price is expected to drop to less than 2 euros. As for IPTO, analysts estimate that a share value of 2.95 euros would be a fair price.