Ljubljana, 13 December (STA) – Abanka Vipa will launch on Thursday a EUR 90m capital hike at EUR 4.20 per share. The recapitalisation will be deemed successful if Slovenia’s third largest bank succeeds in raising at least EUR 50m.

The capital increase will be conducted in three stages: existing shareholders will be able to subscribe new shares on a pro rata basis in the first round and buy any remaining shares in the second round, while the third round will be open to all investors.

The decision for the recapitalisation was made after the previous round of capital raising in August failed as existing shareholders subscribed only 1.4% of the EUR 50m issue, due to the high price of newly issued shares, at EUR 7. The bank’s value on the Ljubljana Stock Exchange was at around EUR 5 per share at the time.

The management and the supervisory board believe the recapitalisation will be successful.

“The capital increase will allow the bank to improve its capital adequacy ratio, meet the requirements of the Basel III accord as well as establish the capital basis for continued realisation of its strategy,” the bank said.

The three biggest owners of Abanka are insurer Zavarovalnica Triglav, conglomerate Sava and Gorenjska banka bank, which together hold a 71% stake in the bank.