Banco Popular sees orders for 11 pct of rights issue on debut

MADRID Wed Nov 14, 2012 7:56pm GMT

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MADRID Nov 14 (Reuters) - Spain's Banco Popular received orders for 11 percent of a 2.5-billion-euro ($3.2 billion) rights issue on its first day, the bank said on Wednesday.

The rights issue was an attempt by the bank to avoid seeking state aid after an independent audit of Spanish banks found it needed an extra 3.2 billion euros to weather a serious economic downturn.

The bank's shares rose 3 percent on Wednesday, not counting the subscription rights, to 0.579 euros a share. The rights closed at 0.468 euros.

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 that analysts had expected.

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