Investors who backed UniCredit rights issue see 75% gain

Investors who took advantage of a €7.5bn rights offering by troubled Italian bank UniCredit are reaping the benefits as the company has delivered the largest equity return of any stock in the Euro Stoxx 50 index since 10 January.

Investors who bought into the rights at the end of the first day of the offering (9 January) have recorded a 75% gain, if they convert them to shares at the January 26 closing price, according to Bloomberg data. The rights issue was an attempt by the bank to strengthen its capital position to comply with European Banking Authority capital ratio requirements. UniCredit's share price has experienced a rollercoaster ride since the rights offering commenced, and trading was banned on 1 November and 4 January owing to concerns over dramatic price movements, Bloomberg reports. On 9 Janua...