Bankia, the biggest of Spain’s troubled cajas banks, announced today that it expects to raise €3.3 billion ($4.6 billion) in an IPO, according to The FT.
The action is seen by Spain’s government as an important step to reforming Spain’s damaged banking sector.
Shares of Bankia are heavily discounted.
They are expected to be priced around €3.75, with the expectation originally that they would be listed between €4.41 and €5.05.
The Bank of Spain now requires all Spanish banks to have core capital levels above 8 per cent. Bankia’s were at 5.4 per cent during last Friday’s stress test, but the IPO will raise that level to 9.6 per cent.
Five out of the nine banks that failed Friday’s stress test were Spanish.
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