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Investing.com -- Shares of Pierer Mobility plummeted by 35% following the announcement of a significant capital raising effort as part of the company’s restructuring program.
The plan includes raising €350 million at €7.50 per share, with €150 million expected from existing shareholders through statutory subscription rights and an additional €200 million through a contribution in kind from Pierer Bajaj AG, which will occur without statutory subscription rights.
An Extraordinary General Meeting (EGM) is scheduled for April 25th to vote on the resolution.
The move to raise capital has raised concerns among investors about the potential dilution of shares.
Jefferies analyst commented on the situation, stating, "Assuming this is fully subscribed we expect the share capital to be increased by a factor of 2.4. Pierer Mobility has already started a production ramp on March 17th, but we expect it to be gradual."
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