(BFM Stock Exchange) – The satellite operator announced Thursday evening a capital increase in a total amount of 1.35 billion euros. Despite the important influx of titles that will be issued, the action rises. According to a financial intermediary, open sellers can unlock their positions.

The market can sometimes be (very) paradoxical. The Eutelsat satellite operator announced Thursday evening after the closing of the market, a significant recapitalization, with a capital increase project in two stages of 1.35 billion euros.

This sum corresponds to the market capitalization (the total value of its shares) of the company at the end of Thursday.

The capital increase will result in a significant influx of securities which should create a large dilution for minority shareholders who would not participate in the capital increase.

Most of the time in this type of situation, the action is under pressure on the Paris Stock Exchange. This is not the case this Friday. The Eutelsat title flies from 31.5% in the middle of the afternoon.

>> Access our exclusive graphic analyzes, and enter into the confidence of the trading portfolio

A fairly limited amount to look for the market

Recall that the capital increase provided by Eutelsat revolves in two stages. The group will carry out a reserved capital increase of 716 million euros which will be subscribed by the French State via the Agency for State Participations (APE), BARTI SPACE LIMITED, a subsidiary of the Indian conglomerate BHARTI, the Maritime Transport Group CMA CGM (Owner of BFM and RMC) and the Strategic Participation Fund (FSP), which brings together major French insurers.

This first reserved capital increase would be taken out by the French State via the APE for 526.4 million euros, Bharti Space Limited for 31.4 million euros, CMA CGM for 100.4 million euros and the FSP for 57.8 million euros.

This first operation must be carried out at a price of 4 euros per title, translating a bonus of 40% compared to the closing price of Thursday evening.

Eutelsat will then launch a second capital increase larger by 634 million euros. The APE, Bharti, CMA CGM and the FSP will participate in the height of their respective participations which will result from the first capital increase.

Ultimately, the operation is structured in such a way that the amount to be found on the market is actually quite limited. “What is happening is that the amount to go and seek on the side of the market is only about 250 million euros. However there were still a lot of ‘shorts’ (open sellers, who sell the action without having it, by borrowing it, editor’s note) on the title. In view of the announcement, they were able to consider that it was time to unlock their positions and therefore redeem the action. increase, “explains a financial intermediary.

The weight of individuals

Discovered sellers take a position on a title when they feel that negative events can occur on an action. A capital increase on the part of Eutelsat had been expected for several weeks by the market, insofar as Eutelsat faces significant investments while burning cash, due to the losses of its constellation of satellites with low orbit landweb.

Now that the announcement has fallen and that it is less “bad” than expected, the sellers uncovered do not perceive any negative event to come and therefore balance their positions. Which results in purchases of shares.

The previously quoted financial intermediary also believes that the title can be supported by purchases of private investors, who have been very interested in action this year. “Individuals are very active and they see things from a certain angle, buying the value because it enters the theme of defense (with the connectivity permitted by the satellites, editor’s note) and they are waiting for contracts. They look at the accounts, the financial results,” he explains.

“However, I think that given the number of shares to be issued, the logic of the capital increase will eventually prevail,” adds this financial intermediary.

Eutelsat was one of these actions (with the Germans Renk and Hensoldt) who have sometimes been qualified as European equivalent of “Even Stock”, these titles on which American individuals have linked on stock market forums to raise their courses, such as Gamesop.

The small carriers had led the title Eutelsat to experience an incredible increase. At the height of its aberrant Rallye Rally, in March, the title displayed an increase of more than 200% over the whole of 2025 with three consecutive sessions of strong increases ( +68% then +77% and +119.8%). Before losing the bulk of this increase later.

Mega-contract

In addition to purchases of private investors, this movement had been fueled by speculation linked to diplomatic tensions between the United States and Europe, and the proximity of Elon Musk with the American president, Donald Trump. The market has anticipated an additional order for European satellite operators to circumvent the Starlink system of Elon Musk in Europe.

“In the past two days, the Eutelsat share price went from 1.20 euros to 3.57 euros (+197 %), since Eutelsat (with its European counterparts) could provide additional satellite connectivity in Ukraine and constitute a credible alternative to Starlink”, noted Deutsche Bank in early March.

“Current geopolitical tensions have created a breach so that the Eutelsat Oneweb constellation was used strongly for defense communication services, and European governments have put more emphasis on this subject,” said alphavalue.

Thursday, Eutelsat announced that it had signed a contract with a maximum of 1 billion euros over 10 years with the Ministry of Defense. The French group will provide the French army with spatial resources with priority access, on its constellation Oneweb.