Small investors hit as Italy’s Vicenza aims low in IPO

Rescue plan: Banca Popolare di Vicenza must raise 1.76 billion euros (US2bil) and list on the market to plug a capital shortfall revealed by the European Central Bank and avert the threat of being wound down after big losses. – Bloomberg

MILAN: Struggling Italian lender Banca Popolare di Vicenza effectively wiped out the savings of thousands of its small shareholders when it set a price range for its initial public offer (IPO), valuing its stock at a fraction of their original investment.

Popolare di Vicenza, Italy’s eighth largest bank, must raise 1.76 billion euros (US$2bil) and list on the market to plug a capital shortfall revealed by the European Central Bank and avert the threat of being wound down after big losses.