(CATP customer) Banca Profilo to Sell New Shares to Fund Branches, Internet
Milan, Feb. 23 (Bloomberg) -- Banca Profilo SpA, a private bank that is the Italian market's best-performing banking stock this year, said it plans to raise as much as 129 billion lire ($66.9 million) selling new shares to expand its network and fund a drive on to the Internet.
The bank, whose shares have gained 456.5 percent since the start of the year, first will give investors five new free shares for each six they own. It will then offer a total 8.1 million new shares to existing investors for 16,000 lire each in a ratio of one new share for each 14 already owned. The money will be used to add to the bank's eight branches in Italy and to develop its Internet services throughout Europe.
``We're going to continue to aim at high net worth clients,' said Banca Profilo Chairman Sandro Capotosti. ``We have clear ideas, clear plans and the technology we need.'
Italian banks in recent months have turned to the Internet to reduce the costs of doing business and to gain new customers. Those that have announced plans to offer online trading and other services range from the biggest banks, such as No. 2 lender San Paolo-IMI SpA, to local cooperative banks.
Banca Profilo, which sold shares to investors last year, became an Internet player in January, when it signed an accord with Cambridge Technology Partners, which integrates information systems and designs Web sites, and with SIA, which sells technology to banks.
Banca Profilo said it doesn't plan to offer online trading. Instead, it will use the Internet to widen the range of services it offers. It declined to be more specific. The bank will present its Internet project in mid-April, Capotosti said.
Banca Profilo also said it plans to offer staff options to buy as many as 2 million new shares at a minimum of 21,000 lire a share during the next three years. That will raise another 42 billion lire if the shares are sold at the minimum price.
The bank has about 2.5 trillion lire under management, Capotosti said.
Banca Profilo shares fell 4.8 percent to 18.88.
Feb/23/2000 12:55 |
