Rights issues run aground as vol crushes ECM

By Sam Kerr
19 Mar 2020

Equity bankers are working with corporates on potential rights issues to shore-up balance sheets given the huge economic disruption caused by the coronavirus in Europe. But with volatility sky-high, even optimistic bankers are wary of bringing deals to market, while other ECM deals like block trades, convertibles and IPOs are no-go areas for the foreseeable future.

A rights issue by Aston Martin had to be restructured last Friday after a collapse in its share price meant that its stock fell below the subscription price.

And Austrian semi-conductor company AMS has been flattened by the coronavirus volatility and its shares have traded through the subscription price ...

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