November 14, 2012 / 8:33 AM / 5 years ago

Banco Popular shares gain on rights issue debut

MADRID, Nov 14 (Reuters) - Shares in Spain’s Banco Popular gained 8 percent on the debut of its rights issue on Wednesday, following the lender’s 2.5 billion euros capital increase which is an attempt to avert seeking state aid.

At 0815 GMT, Popular shares were up 8.01 percent to 0.596 euros, based on the theoretical ex-rights price (TERP) for the shares, which was fixed at 0.585 euros.

The rights jumped almost 9 percent to 0.510.

The lender offered three new shares at 0.401 euros for every existing share in the rights issue.

The new shares were offered at a 64 percent discount to a closing price of 1.118 euros on Friday, the day before shareholders approved the capital hike, steeper than the 55 percent discount analysts had expected. (Reporting by Jesús Aguado; Editing by Clare Kane and Mark Potter)

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