Talanx Launches €300 Million Capital Raise to Boost Free Float
Talanx Launches €300 Million Capital Raise to Boost Free Float
European insurance giant Talanx has initiated a €300 million capital raising effort aimed at expanding its free float, a strategic move to bolster the liquidity of its shares and solidify its standing in equity indices.

The company intends to augment its share capital by issuing new no-par value registered shares against cash contributions, employing a simplified process that excludes existing shareholders’ subscription rights. Notably, these newly issued shares will carry full dividend entitlements for the ongoing fiscal year, effective from January 1, 2023.

Simultaneously, Talanx’s majority shareholder, HDI V.a.G., currently holding a 78.9% stake in the company, has expressed its intention to divest additional Talanx shares worth up to €100 million, equivalent to approximately 0.6% of the current share capital. This divestiture is aimed at further enhancing the company’s free float.

Upon successful completion of this transaction, Talanx’s free float is poised to increase from its existing 21.1% to roughly 23.2%. Consequently, HDI V.a.G.’s ownership stake will decrease to approximately 76.8%.

It’s worth noting that following the private placement and barring customary exceptions, both Talanx and HDI V.a.G. will be subject to a 180-day lock-up period. During this period, neither entity will be permitted to issue additional shares or financial instruments convertible into shares. Furthermore, they are prohibited from implementing any further capital increases or selling additional existing shares.

Talanx’s strategic maneuver represents a calculated step towards strengthening its position in the market and expanding its investor base, while HDI V.a.G.’s willingness to reduce its ownership underscores the company’s commitment to enhancing trading liquidity and market accessibility.

Speaking about the move, Dr Jan Wicke, Talanx AG’s CFO, commented: “This move is our response to repeated requests from investors to increase Talanx’s free float and to lay the foundations for improving the shares’ trading liquidity. In addition, it will strengthen the position of Talanx’s shares in a number of equity indices. This is a positive step for our stock’s future performance. All in all, it means we are laying the foundations for more investors to invest in our shares.”

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