Unione di Banche Italiane SpA will seek to raise €400 million from shareholders through a 6-for-35 rights issue.
The bank will issue up to 167,006,712 new ordinary shares at a subscription price of €2.395 per share, a discount of approximately 26.1% to the theoretical ex-rights price based on the lender's June 7 closing price.
Rights to the new shares may be exercised between June 12 and June 27 and can be traded on the Borsa Italiana's MTA between June 12 and June 21. Unexercised rights will be auctioned by the bank on the MTA.
The capital increase is designed to ensure that the bank's capital buffers are maintained throughout the process of integrating three recently acquired rescued Italian banks.
Credit Suisse will serve as global coordinator and book runner on the offering and agreed to take up any shares left unsubscribed at the end of the rights auction, up to the full value of the capital increase. The bank had said June 6 that Credit Suisse and Morgan Stanley would serve as joint global coordinators and joint book runners.