# Shares in Monte dei Paschi plunge 14% after capital raise
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-04
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Monte dei Paschi di Siena Shares Plunge 14% on Capital
Meta Description: Shares in Monte dei Paschi di Siena fall 14% as state-owned bank completes 2.5 billion euro capital raise. Analysts predict further decline.
URL: https://financedigest.com/shares-in-monte-dei-paschi-plunge-14-after-capital-raisehtml

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MILAN (Reuters) – Shares in Monte dei Paschi di Siena plunged 14% on Friday, triggering an automatic trading suspension, after the state-owned bank successfully completed a 2.5 billion euro ($2.4 billion) capital raise.

Monte dei Paschi said late on Thursday its new share issue had been 96.3% subscribed, with underwriters taking up the remaining 93 million euros.

Monte dei Paschi has been forced to price the new shares at an unusually small discount, because of its shrunken market value compared with the cash call’s size.

Analysts had [forecast the shares](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares") would fall once they started trading to bring valuation multiples in line with those of peers.

($1 = 1.0233 euros)

(Reporting by Valentina Za; editing by Agnieszka Flak)


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