More European firms could turn to treasury share sales

By Sam Kerr
23 Jun 2020

Banks are hoping that there will be more European primary capital raising in the weeks ahead as companies begin to assess what will be needed to rebuild their balance sheets and whether the time is ripe for growth. A €341m share trade in German firm CompuGroup Medical on Monday night may show a way forward for issuers.

The company, which develops software for the healthcare sector, raised €341m by placing 5.3m shares with investors. Unlike the vast majority of issuers that have raised capital in response to Covid-19, most of the shares sold by CompuGroup were treasury shares bought during a period of buy-backs, rather ...

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