Orco announced raising EUR 9.54m via issuing 100,000 new shares (at 4% discount price EUR 95.41/share) via its PACEO program with Societe Generale. Program allows Orco to issue up to 1m new shares and as a result of this latest issue, issuing capacity stands at additional 650,000 new shares. Total number of shares now equals 8,142,112.
Our view:
The share issue is in line with the company’s cash needs to finance recently acquired properties as well as some new ones. As the share issue is part of PACEO program, which is in place since April 2006, we don’t expect negative reaction of the market to this news and will be waiting for more details regarding the projects for which the cash will be used with possible impact on our valuation.