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EFG International's Stake In Structured Investments Business Falls Further After IPO
Tom Burroughes
26 October 2012
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.