EFG International, the Swiss private bank, announced today that its stake in the EFG Financial Products business has fallen to just over 20 per cent following the initial public offering of the latter business a week ago, as previously reported.

The bank had originally cut its stake in its structured investments subsidiary from around 58 per cent to around 25 per cent; the stake has fallen further as a result of an “over-allotment option being exercised in full”, EFG International said in a statement.

The IPO was announced earlier in the year as part of EFG International’s plan to reduce costs and improve profitability. The bank has said the share sale should increase EFG International’s capital adequacy ratio to approximately 17 per cent.

When it carried out the IPO on the SIX Swiss Exchange, EFG International granted the underwriters an over-allotment option of up to 293,713 registered shares. As announced today by the global co-ordinator and bookrunner of the transaction, this has now been fully exercised.