This hugely successful venture for a Greek company—attracting over 18 billion euros in foreign capital, the vast majority of which comes from abroad— beyond the obvious vote of confidence in PPC itself and in the prospects of the Greek economy, has many interpretations and side effects.
Both because the fact itself speaks volumes about how global investment portfolios now view the country, and because among the 7 “major shareholders” of PPC, who now account for nearly 60% of its shareholding structure, according to information from Euro2day.gr, there are names such as Blackrock and Capital Group, which are “buying into” Greece for the first time.
The now-larger percentage of foreign investors participating in its share capital, along with the surge in its market capitalization to 11-12 billion euros, is considered to have virtually secured the group’s inclusion in the MSCI index.
As for the side effects, beyond the fact—as analysts say—that the 228 million new shares set to begin trading on Tuesday, May 26, will continue to shape market sentiment and psychology, is that the €24 billion plan aimed at “doubling” PPC by 2030 will, in the second year, open up new opportunities for the domestic energy ecosystem as well, through partnerships outside Greece, for example, for the development of solar, wind, and battery technologies.
In the first year, however, the day after the book closes will focus on determining the company’s new shareholder structure, with the final percentages resulting from the“settlement”and the crediting of investors’ accounts, which will take place next week.
According to information from the underwriters, the initial allocation of the new shares took place on Thursday, highlighting the significant… “bloodbath” that inevitably ensued.
This was due both to the €4.25 billion cap the company decided to set, and to the need to satisfy as many players as possible—both institutional investors and hedge funds—which the company needs to ensure liquidity in the stock and to facilitate trading.
The picture, as conveyed by the same sources, is indicative, according to which:
- BlackRock (with $14 trillion in assets under management), which submitted bids in the book for $600 million, appears to be receiving $250 million.
- The U.S. fund Capital Group, which subscribed for $900 million, will ultimately receive, according to the same sources, shares worth $250 million. That is $650 million less (-72% of the initial bid).
- The London-based British hedge fund Covalis Capital, which specializes in investments in energy utilities and had a bid in the book for 300 million euros, will ultimately acquire shares worth 160 million euros.
- Al-Rayyan Holding Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, which had subscribed for €400 million, will acquire shares worth €170 million.
- And K Group Capital Partners (the Kyriakou family) is also acquiring approximately 170 million.
Judging by the allocation of the new shares and given that the company’s market capitalization now ranges between 11-12 billion euros (the fourth largest on the Athens Stock Exchange), PPC’s new shareholder structure regarding the 7 “big players” is expected to take the following form:
- The Greek government, which contributed 1.3 billion euros, holds 33.4% and remains the largest shareholder while retaining a statutory minority stake.
- CVC Capital holds approximately 17% (having contributed 1.2 billion euros, as previously announced), up from the 10% stake it previously held.
- BlackRock holds 2.08%, appearing in this capacity—as an institutional investor (long-only)—for the first time in Greece. Until now, it had also held a stake in PPC, but through BlackRock Hedge Funds.
- Capital Group holds 2.08%, also making its debut in Greece.
- 1.41% is held by the Arab Al-Rayyan Holding Qatar Investment Authority (QIA).
- K Group Capital Partners (the Kyriakou family) also holds 1.41%.
- 1.33% is held by the hedge fund Covalis Capital.
The new institutional investors and, in the background… Data Center
When asked what it means that these players acquired far fewer shares than they initially wanted, banking sources explain that the new shareholders are now gaining an entry point into the company, and the intention of many is to build on this to secure higher stakes going forward.
For the most part, the new institutional shareholders fall into the category of those who, when entering a company, have a strategy of holding the shares for a 10- to 14-year horizon.
Their presence in a stock creates “beacons,” as banking sources put it (support, resistance, or high concentration levels), acting as strong confidence indicators that stabilize or guide the price. Precisely because of this policy, the company took care to increase the presence of hedge funds as well, to ensure any liquidity in the market.
According to reports, the new shareholder structure also includes many more new Greek institutional investors, as indicated by the fact that the Greek book closed at 1.1 billion euros.
Adding up the value of the shares allocated to the seven existing and new major shareholders of PPC results in a total of €3.5 billion, or 82% of the funds raised.
Beyond that, retail investors acquired shares worth €380 million, while dozens—or even hundreds—of other Greek and foreign institutional investors divided the remaining €600 million into smaller portions of €1, 2, 5, 10, and 20 million.
That is, the difference up to the total amount of 4.5 billion euros, as in addition to the capital raised (4.25 billion euros), the company also sold treasury shares worth 250 million euros to cover part of the demand.
On the trading floor, the stock saw much higher trading volumes than usual for yet another day, as 3.1 million shares changed hands (following Thursday’s record of 5.98 million), with the stock accounting for, give or take, 24% of the total gross value of yesterday’s trades.
In purely business news, however, everything suggests that the coming period will not pass without developments. According to estimates, PPC is going full steam ahead to secure the No. 1 project from here on out: the AI Giga Factory in Kozani.
Everything indicates that meetings will intensify and consultations with the two American giants —with whom management is in advanced talks—will become more frequent in the coming period.