Orco announced that it issued 105,000 new shares at EUR97.65/share raising EUR10.3m from the PACEO program allowing it to issue total of 1m new shares. As result, Orco’s PACEO issuing capacity currently stands at additional 750,000 news shares. The total number of shares now equals 8,000,474.
Our view: The share issue is in line with the company’s cash needs to finance new and standing projects while the PACEO program allows for a flexibility to raise new capital. We are waiting for the details regarding the projects for which the cash has been raised for to asses the impact on our valuation. We rate Orco as Buy with a fair value of EUR116/share.