The current week is full of developments for Piraeus Bank, since the prospectus for the bank’s placement is expected to be approved on Friday, March 1. A little earlier, probably on February 28, the Hellenic Financial Stability Fund (HFSH), which owns 27% of the bank, will announce its decision on the percentage it will make available to investors.
The most likely decision that the board of directors will take regarding the privatization of the percentage is that it will move within a certain percentage range. That is, a scale “from – to” will be decided. It is not known if the upper limit of this scale will ultimately be 27%.
Analysts are talking about a price discount that will range between 5% and 10%. The discount will work in conjunction with the percentage of shares that will be allocated.
The dilemma
Therefore, it remains to be seen whether those who insist on the disposal of the entire 27% will prevail or those who speak for a smaller percentage, since opinions remain divided and a final decision has not yet been made. Those who insist on the full percentage argue that in this way the bank will dynamically enter the private sector and pave the way for the full privatization of NBG immediately afterwards, so that there are no two-speed banks.
Those in favor of a smaller percentage argue that the price may rise after the issue and that the HFSF should benefit as much as possible from this rise, limiting the losses it recorded in the past.
