On Wednesday, shares in French LED technology specialist Lucibel suffered the steepest fall on the Paris market following the launch of a 2.15 million euro capital increase.

The group plans to issue five million new shares at a unit price of 0.43 euro, representing a discount of over 21% to the previous day's closing price (0.546 euro).

Subscription parity will be on the basis of one new share for four shares held during a period scheduled to run from May 3 to 17.

In a press release, the company states that it has already received subscription intentions for a total of 1.6 million euros, representing over 74% of the operation.

Lucibel explains that the funds will be used to continue reducing its debt, but also to accelerate its development in two strategic, high-margin markets: cosmetic lighting and scenography.

In addition to the low subscription price, investors were unhappy with the dilutive impact of the operation, as the stake of an investor holding 1% of the capital prior to the issue should be reduced to 0.80% following the fund-raising.

At around 2:15 pm, the lighting group's share price was down by almost 18%.

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