Unicaja Banco is to be listed on the Spanish stock market on 30 June. The shares are expected to be admitted for sale on the four stock exchanges in Madrid, Barcelona, Valencia and Bilbao. The launch was originally due to take place in 2016 but was postponed due to a general fall in financial values at the time.
The aim is to expand the bank’s capital by 40.3 per cent through the share issue. Up to 687.5 million new shares will be issued, with the value expected to start somewhere between 1.10 and 1.40 euros. This will place them between the current 0.80 euro value of Liberbank shares, and 1.70 for those of Sabadell. The actual price will be set on 28 June.
Through its listing on the stock market, Unicaja Banco plans to be able to meet commitments it made in 2014 when it absorbed Banco Ceiss, supported by government funding of 602 million euros. The entity will have to repay this in 2018, otherwise it will lose control of the Castilian subsidiary. It also plans to increase its stake in Ceiss and use the remainder of the funds for general purposes.
The banking foundation, which currently owns 86.7 per cent of the capital, will see its holding drop to 51.7 per cent after the stock market listing, or 49.7 per cent in the case of a ‘green shoe’ oversubscription for the shares. This is a discretional instrument in the hands of those selling the shares to try to influence their value and in this case it would allow Unicaja to release an additional package of 62 million shares, in other words another ten per cent.
The bank says that its stock market listing will reinforce its medium and long-term growth, and it will focus on building its national business, where it holds a clear leadership position in its home regions of Andalucía and Castilla y León. The Unicaja Group has set certain targets for 2020, including achieving a ROE of above 8%, a cash dividend pay-out ratio of approximately 40% and a fully-loaded CET1 ratio of above 12%, although it admits that these targets are based on a number of assertions and are subject to certain risks, as described in its prospectus.