Daily Market Highlights (27.07.2021)

VBL plc announces IPO


The MSE Equity Price Index lost a further 1.22% to a fresh 4-month low of 3,774.899 points as the declines in MIA, RS2 and Farsons outweighed the gains in BOV and Lombard. Meanwhile, overall trading activity amounted to €0.08 million. Download today’s Equity Market Summary.

Today, VBL plc (‘VBL’) issued a formal notice announcing the offer of (i) 35,714,286 new shares, representing 12.6% of the total issued share capital of VBL post-IPO which will be admitted to the Official List of the Malta Stock Exchange; and (ii) 35,714,286 shares to be sold by existing shareholders subject to the new shares being subscribed in full. The net proceeds from the new shares, which are expected to amount to up to €9.5 million, will form part of a wider long-term funding and investment plan of VBL that is aimed at funding the strategic development plans of the Group. The offer price for this initial public offering is set at €0.28 per share and is open for subscription to all categories of investors, subject to a minimum subscription amount of 10,000 shares (equivalent to €2,800) and in multiples of 100 shares thereafter. The offer period will run from 2 August until 24 September (or earlier in the case of oversubscription). The shares of VBL are expected to be admitted to the Official List of the Malta Stock Exchange on 12 October and trading is expected to commence on 13 October.

In the retail banking sector, Bank of Valletta plc regained the €0.90 level (+1.1%) across 34,025 shares whilst Lombard Bank Malta plc advanced by 2.2% to the €1.86 level on two deals totalling 2,013 shares. BOV and Lombard will be publishing their 2021 interim financial results on 29 July and 26 August respectively.

Malta International Airport plc lost 4.8% to €6.00 (a near 4-month low) as 2,862 shares changed hands. The airport operator will be publishing its 2021 interim financial results tomorrow.

Also among the large equities by market cap, the ordinary shares of RS2 Software plc shed 2.8% to the €1.72 level across a single deal of 4,965 shares.

Meanwhile, Simonds Farsons Cisk plc plunged by 7.8% to the €8.25 level as 2,027 shares changed hands.

The RF MGS Index eased by 0.06% to 1,104.148 points as investors await guidance from the US Federal Reserve’s Federal Open Market Committee (‘FOMC’) which is holding its two-day monetary policy meeting.  The FOMC is widely expected to provide indications on whether the monetary stimulus will start being tapered down as the post-pandemic economic recovery continues. US core capital goods orders and shipments increased substantially in June despite the supply chain bottlenecks that remained a characteristic constraint in the manufacturing sector. Meanwhile, global demand for industrial raw materials such as copper and steel have resulted in a surge in their prices over the past few days, fuelling concerns of inflation due to increased input costs.