(BFM Bourse) – The IT services group announced on Monday that it had completed its capital increase. However, Invest Securities analysts consider the share price “unjustifiable”, given the significant dilution to follow induced by this restructuring.
Atos has reached a new stage in its financial restructuring. The digital services company announced Monday morning that it had completed its capital increase, amounting to 233 million euros, launched at the beginning of November.
Remember that this call to the market is part of an accelerated safeguard plan which was approved by the Nanterre Commercial Court on October 24. It was carried out via the issue of 63 billion shares at a price of 0.0037 euros per unit.
“The success is partial” argues Invest Securities, with demand reaching only 29%, or 68 million euros out of the 233 million euros targeted by Atos. The design office notes that the “group had to call in guarantees to the tune of 165 million euros (compared to a maximum of 175 million euros)”.
A very volatile price
On the Paris Stock Exchange, the stock fell by more than 35% this Tuesday, to 0.4749 euros, after having lost 18% the day before. However, the share price is moving very clearly above the subscription price of the shares newly issued by Atos as part of its recapitalization of the group.
Atos has repeatedly reminded that massive dilution awaits existing shareholders. The group had already warned that a shareholder not participating in the operations planned as part of the restructuring would be diluted by more than 99%.
On Monday, the company reiterated its warning, after its shares experienced sharp increases in the last days of November. Atos had a string of three sessions marked by a surge in its stock, after receiving a non-binding offer from the French State relating to the potential acquisition of 100% of the “Advanced Computing” activities for a value of 500 million euros.
The stock soared by 98.85% on the day of the announcement, November 25. Then 81% and 80%, the following two days. In total, Atos saw its share price increase more than 6 times after the State showed interest in one of the branches of the company in difficulty.
“The implementation of the financial restructuring plan will result in a massive issuance of new shares and a substantial dilution of current Atos shareholders, which could have a very adverse impact on the share price,” it further warned on Monday. , the IT services group.
Especially since, according to Invest Securities, 220 billion securities will ultimately be put into circulation with all the operations planned as part of its financial restructuring, compared to 111 million currently. Atos, for its part, had mentioned an influx of 244.8 billion securities at the beginning of November.
Invest Securities retains a price target of 1 cent for Atos shares, which are currently trading around…47 cents. Which gives an idea of the potential fall of the stock.
A simple calculation illustrates the aberrant nature of Atos' valuation. With the 220 billion shares that must be issued and at the closing price on Monday evening, i.e. 0.735 euros, the theoretical capitalization of Atos post-induced financial restructuring would be… 161 billion euros. Which represents a market capitalization greater than that of Schneider Electric, which is the fourth largest capitalization in the CAC 40 index, or even Totalenergies.
Consequently, for Invest Securities, the current price of Atos remains “unjustifiable”.
Sabrina Sadgui – ©2024 BFM Bourse
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