Allianz, the Munich-based insurer that owns Dresdner Bank and Dresdner Kleinwort Wasserstein (DrKW), has raised raise Euros 4.4 billion in a 7-for-15 rights issue priced at Euros 38 a share.
The subscription price is a 41 per cent discount to the share price on 19 March (Euros 64.8) when the issue was priced. Compared to the closing price of April 11, 2003 (56.95 euros) the discount is about 33 percent.
Allianz has suffered from hefty write-downs in its investment portfolios, and heavy losses at Dresdner, which saw Standrad & Poor’s lower its credit rating to AA- last month. But the capital-raising has gone better than expected, with the volume of rights offered being raised from an initial Euros 3.5 to 4.0 billion to about Euros 4.4 billion.
Although Allianz announced on 20 March that it was looking to raise a total of Euros 5 billion, the success of the rights issue will facilitate the issue of another Euros 1.5 billion in subordinated debt.
The subscription period will start tomorrow. The underwriters at the subscription price include Goldman Sachs, Deutsche Bank, Citigroup and UBS Warburg.