FENER Announces Paid Capital Increase Decision: Stock Price Starts the Day with a Decline
The board of directors of Fenerbahçe (FENER) has decided to increase the company's equity through a capital increase with payment in order to strengthen its equity and meet its working capital needs.
In this context, the company's issued capital will be increased from 98,980,000 TL to 151,020,000 TL, raising the total capital to 250,000,000 TL. The increased capital will be raised through the issuance of 151,020,000 shares at a cash price, with an increase rate of 152.57%. New shares will be issued as group B registered shares and will be traded on the stock exchange. The existing shareholders' rights to acquire new shares will not be restricted and these rights can be exercised at a price of 6 TL for each share with a nominal value of 1 TL. The share acquisition period is set for 15 days; if this period coincides with a public holiday, it will end on the evening of the following business day.
A significant portion of the funds obtained from the capital increase (70%-75%) will be used for repaying bank loans, while the remainder will be allocated for player salary payments. As a result of the capital increase, a gross fund of 906,120,000 TL is projected, with an expected net fund of 903,461,852 TL after deducting estimated IPO expenses.
The obtained funds can be evaluated through various financial instruments such as time deposits in Turkish Lira, Eurobonds, or mutual funds. The company will show a 10% flexibility among the categories specified for the use of funds, taking into account global and local economic conditions.
Fenerbahçe management believes that the success of the capital increase will positively affect the company's interests. This process aims to help reduce Fenerbahçe's debt burden and establish a firmer foundation for financial management.
FENER started the day with a decline. Following the announcement of the capital increase decision after the market closed yesterday, FENER shares began the day at 110 TL with a 3.85% decrease. As sales continued in the first hour, the stock price fell to 106.2 TL with a 7% pullback.
The stock, which has been on a downward trend since July, had seen a 21% increase in value this month, but the ongoing sales since yesterday has reduced its monthly return to 9%. FENER had achieved a significant return of up to 130% in the first half of the year; however, in the second half, most of those gains were given back during the sharp pullback, bringing the annual return down to 24% as of today.