(News Bulletin 247) – Reserved for a fall since the opening, trading of the Orpea stock resumed this Tuesday.
Reserved for a fall this Tuesday, November 14 in the morning, Orpea is therefore trading at 0.482 euros around 2:30 p.m. the day after the launch of the first capital increase aimed at erasing part of its significant debt, valued at more than 9 billion euros.
The share price of the retirement home operator adjusts, in line with the value of the subscription price of the new shares issued as part of the first phase of recapitalization of the group. Around 2:30 p.m., the share price was 0.482 euros, a drop of 49% compared to the closing price (not recalculated after the capital increase) on Monday evening. But if we look in relation to the subscription price of the new shares issued (set at 0.0601 euros per share), the title “progresses” by 690% (according to data from the Euronext website). Behind these variations, it must be understood that it is above all a massive dilution which is beginning for existing shareholders.
Remember that this first fundraising from Orpea “aims to clear all of the company’s unsecured debt”, and will amount to “around 3.9 billion euros” . On Monday, Orpea shares fell 14.5% after the announcement of this operation aimed at cleaning up the financial situation of the listed group.
Three capital increases are planned in total and Orpea has already warned that the share price should, following this complete restructuring, fall below 2 cents.
Clariane close to payment default
The context is particularly harsh for operators of retirement homes listed on the stock exchange. Clariane is also under pressure, and for its part yields more than 14%, reaching new historic lows at 3.10 euros this Tuesday.
The group is weighed down by the announcement of a financing plan intended to strengthen its financial structure while major debt deadlines are arriving for the former Korian.
The financing plan is broken down into four parts for a total amount of 1.5 billion euros and includes asset sales as well as a capital increase. “The successive implementation of the various measures of this plan conditions the group’s ability to honor its financing deadlines in 2024 and beyond,” explains Clariane. “Failure to do so, the company could face” a liquidity risk by the end of April 2024,” the company also wishes to warn.
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