Lombard Bank publishes Rights Issue Prospectus

The MSE Equity Price Index decreased by 0.22% to 3,684.139 points as the declines in BOV and GO outweighed the gains in MIA, APS and Mapfre Middlesea. Meanwhile, four other equities closed unchanged as overall trading activity in local equities amounted to €0.12 million. Download today’s Equity Market Summary.

Today, Lombard Bank Malta plc published a prospectus following regulatory approval in connection with a 2-for-3 rights issue for a value of €45.4 million net of issue expenses. The net proceeds from the Rights Issue are principally earmarked to supplement the funding requirements for the Bank’s strategic objectives and to further strengthen its capital base with a view to ensuring that the Bank is well-positioned to meet the capital buffers required in terms of European banking regulations. The Rights Issue period is between 28 September to 26 October 2023. If an entitlement to New Ordinary Shares is not validly taken up by noon on 26 October 2023, then such Rights will be deemed to have been renounced and will become Lapsed Rights. Any Lapsed Rights will be made available for subscription and shall be subject to an excess share application at the Rights Issue Price of €0.75, subject to a minimum application amount of 1,000 ordinary shares. The excess share offering period will take place between 1 November and 27 November 2023.

Also in the banking sector, Bank of Valletta plc shed 1.6% to an over two-month low of €1.23 across three trades totalling 13,675 shares. BOV partially recovered from an intra-day low of €1.22 (-2.4%).

GO plc was today’s worst market performer as it slumped by 3.4% to an almost six-month low at the €2.80 level, partially recovering from a low of €2.78 (-4.1%). GO was today’s most actively traded equity as 15,000 shares changed hands over two trades.

On the other hand, Mapfre Middlesea plc surged by 4% to a one-month high at the €1.30 level over two trades totalling 6,684 shares.

APS Bank plc advanced by 1.7% to a three-week high of €0.61 on one deal of 2,000 shares.

Similarly, Malta International Airport plc gained 0.9% to €5.65 on a single trade of 1,750 shares.

Meanwhile, MIDI plc traded flat at the €0.232 level on three trades totalling 118,550 shares.

Also in the property sector, Malta Properties Company plc held the €0.392 level on trivial volumes.

The ordinary shares of RS2 plc closed unchanged at the €1.23 level over four trades totalling 8,268 shares.

A single deal of 1,080 shares left Simonds Farsons Cisk plc unchanged at the €6.70 level.

The RF MGS Index snapped a three-trading day losing streak as it moved 0.19% higher to 861.948 points driven by an increase in the price of long-term MGS. Yesterday, the German 10-year Bund yield reached a twelve-year high above 2.77%. Today, the Bund yield maintained levels close to yesterday’s highs. Tentative Eurozone PMI data for September released today shows that the markets are set to contract at a slower rate than the previous month driven by the improved performance of the services sector. Similarly, in the US, the 10-year Treasury yield briefly hit a 16-year-high above 4.5%. During a monetary policy meeting on Wednesday, the federal funds rate was left between 5.25% and 5.50%. However, a majority of the Federal Reserve board members are currently anticipated to propose another rate hike before the end of the year.

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.