As indicated earlier, Orco reported details concerning its second step-up equity program (PACEO) for up to 1 million shares in one or more tranches, raising up to EUR 25m with each share issue (expected total amount is some EUR 100m). The total amount of capital will depend on the actual financing needs over the lifetime of the PACEO. Societe General as the manager undertakes to subscribe the share issue over 24 months. Subscription will be at an issue price of at least 96% of the market price at the time of execution. The step-up equity program is subject to EGM approval on April 27. As this news has already been announced on Orco’s presentation in early April, we see the news as neutral for today’s trading. We expect Orco might use proceeds from the issue to finance possible acquisitions, and we reiterate our Buy recommendation on the stock.