BOCY to re-list on Dec. 16

Financial Mirror (Cyprus) - - FRONT PAGE -

Bank of Cyprus got the green light from the Cyprus Stock Ex­change to re-list next week on the bourse that has been strug­gling with­out its bell­wether stock.

The CSE said that it has ap­proved the list­ing of about 8.9 bln shares, most of which are new ti­tles split be­tween the bailed-in de­pos­i­tors from last year and the strate­gic in­vestors who pumped in EUR 1 bln in fresh cap­i­tal in Au­gust this year.

A se­nior CSE of­fi­cial told the Fi­nan­cial Mir­ror on Fri­day that the shares will prob­a­bly start trad­ing on Tues­day, De­cem­ber 16, as ini­tially ex­pected. That is a day after an ad­di­tional sub­scrip­tion pe­riod opens to raise a fur­ther EUR 100 mln from re­tail in­vestors. The pub­lic of­fer con­cludes on Jan­uary 9.

The CSE of­fi­cial also said that de­spite the an­tic­i­pated vol­ume of trades, the bourse is not plan­ning to con­duct a pre-ses­sion vir­tual trade to test its IT sys­tems.

In­vestors are keen to see how the stock will fare, with an open­ing price set for the time be­ing at the pub­lic of­fer cost of 24c.

Bailed-in de­pos­i­tors, who saw 47.5% of their un­se­cured sav­ings above EUR 100,000 ex­changed for eq­uity, will likely be among the first sell­ers, in or­der to pay down per­sonal debts or even guar­an­tees pro­vided to the bank it­self, which in the ab­sence of mar­ket liq­uid­ity has been ex­tremely strin­gent in pro­vid­ing new fa­cil­i­ties.

On the other hand, in­vestors keen to “av­er­age up” their port­fo­lios, many of whom saw their pre-2013 hold­ings re­duced to less than 1%, could be on the side­lines, look­ing for buy­ing op­por­tu­ni­ties, as a stock support mech­a­nism has not been put in place by the bank or its trad­ing arm, CISCO.

The 8,904,425,940 new or­di­nary shares in­clude the 3,873,269,066 is­sued to bailed-in de­pos­i­tors, 5,781,443 is­sued to ju­nior bond own­ers who also saw their hold­ings con­verted to eq­uity, 4,166,666,667 is­sued to strate­gic in­vestors who sub­scribed to the EUR 1 bln cap­i­tal in­crease and 858,708,764 is­sued to ‘Legacy Laiki’, the de­funct Cyprus Popular Bank un­der state ad­min­is­tra­tion.

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