As part of the second installment of Credit Suisse's 4 billion Swiss francs capital increase, shareholders had to decide whether to subscribe to the newly issued shares or not. Those who did are now in the black.
At the end of November, the time had come. Starting on Monday the 25th, subscription rights for new Credit Suisse shares were listed, and the share price went down accordingly. Shareholders then had until December 8 to exercise their rights, sell them or let them lapse. Almost all of them, some 98.2 percent of the share capital, took advantage of the opportunity.
In the meantime, the share price has proven them correct. In purely arithmetical terms, the price at which those who took part was 3.134 Swiss francs. In the past few days, the price of Credit Suisse shares at times reached as high as 3.20 francs and currently stands at around 3.16 francs.
Rights Issue Price
The reference is the November 23 closing price, which was the last trading day before the rights issue. Anyone who owned 7,000 shares at that time had a value of 23,170 francs in their securities account at the price of 3.31 francs. With a ratio of 2 shares for 7 rights, this made it possible to subscribe to 2,000 new shares for 2.52 Swiss francs per share, corresponding to a purchase price of 5,040 Swiss francs.
The new purely arithmetical reference deposit value of 28,210 francs for 9,000 shares results in the baseline price of 3.134 francs. If the share price is above this threshold, participation was profitable. Below it, one would have been better off selling shares before November 25 to buy them back later at a lower price.
But will be cold comfort to those long-term Credit Suisse investors. After all, the price was still above 9 francs in February 2022.
