According to reports, the pre-marketing for ADMIE Holdings’ share capital increase—which is entering its final stages—is signaling bids approaching €1 billion, with the book-building period set to open on Tuesday, June 16, following the green light from yesterday’s General Meeting of the listed company.
According to market sources, demand is particularly strong, and indications point to significant oversubscription of the €250 million the company aims to raise, with the overwhelming majority of interest coming from abroad—namely, long-term infrastructure investors and hedge funds.
Paving the way for the three-day book-building period (June 16–18), the Extraordinary General Meeting of Shareholders approved yesterday the company’s capital increase, waiving the preemptive rights of existing shareholders, so that it can more easily attract new investors, such as the large foreign portfolios that the Greek side met during the roadshows in London.
In the case of existing shareholders, there will be a priority allocation, as was the case in the recent PPC capital increase, so that they maintain at least the same percentage of ownership after the capital increase.
Once the market covers the €250 million, the entire capital increase, amounting to €1 billion, will be secured, as the remainder is “locked in” by the State, which holds 51% of ADMIE, and the Chinese shareholder of State Grid, which controls 24%.
In this case, the Greek government will contribute €530 million to the capital increase, of which approximately €370 million will come from the Recovery Fund and the remaining €147 million will be covered by the ADMIE DES fund.
The difference of €470 million to €1 billion will be covered by €240 million from the Chinese (24%) and €250 million from the market.
The offering price range
According to the decisions of yesterday’s General Meeting, ADMIE Holdings will issue 250 million new common registered shares, with a par value of 1 euro, to be offered through a combined offering — Greek and international books, which will open simultaneously on Tuesday — and at a single offering price that cannot be lower than €2.12 per share.
The stock closed yesterday at 4.22 euros and, since April 30—when the government paved the way for the capital increase with an amendment in Parliament—it has rallied by around 28%.
Although there are still two trading sessions remaining before the start of the book-building process, judging by current levels and factoring in a small discount relative to the current value, market sources are discussing an offering price range of between €3.80 and €3.90.
When asked when the settlement—that is, the allocation of new shares to the company’s new shareholders—will take place, the CEO of the listed company, Yannis Karabelas, estimated yesterday that the process will be fully completed by June 23.
Attention is now turning to the names of the foreign portfolios that will knock on the listed company’s door on Tuesday, where, in addition to long infrastructure funds—such as those with which the management teams of ADMIE and ADMIE Holdings have met to date— it is estimated that we will also see hedge funds like those the company wants to attract.
Its primary objective is for hedge funds to constitute a certain percentage of the Operator’s new shareholder structure, so that trading can take place and the stock has the necessary liquidity as part of the implementation of the company’s new €6 billion investment plan.
Preparations for the next phase have already begun, as evidenced by the recent announcement naming Fulgor and Prysmian as preferred bidders for the construction of 150 kV high-voltage cables and AC (HVAC) for the interconnections in the Dodecanese and the North Aegean islands.
These interconnections of national importance, together with the second cable to Italy, are set to absorb the bulk of ADMIE’s investment plan and will be financed by 1 billion euros of the capital increase, combined with the corresponding funds from European funds.