Regardless of whether the Athens stock market is lagging behind peers and the lack of new listings, 2021 was a pivotal year for the Greek bourse as a 14-year record was set in total funds raised by listed companies. The Greek stock market may have inherent weaknesses but in 2021 there were eight capital increases and seven bond issues, which brought in capital of more than 5 billion euros.
Through 8 share capital hikes in 2021 - with the top ones of PPC and Piraeus Bank - the listed companies raised a total of 3.7 billion euros. This is the largest amount since 2007, when MIG tapped the market for a massive 5.19 billion euros. Of course, the years involving bank recapitalizations are excluded.
Specifically,
- Piraeus Bank raised 1.38 billion euros, PPC 1.35 billion euros, Alpha Bank 800 million euros, Ellaktor 120.5 million, Aegean Airlines 60 million, Premia 47.5 million, Elgeka 10.9 million and Tzirakian 3 million.
At the same time, through bond issues, the listed companies have raised a total of 1.42 billion euros, which means that in total, together with the share capital hikes, the companies have raised from the market almost 5.2 billion euros.
This is a record year, which shows that the Athens Stock Exchange can again function as a lever for raising cheap capital for businesses. This is, after all, the central purpose of having a stock market – to support companies in their push for further development. The Greek stock market has changed course in 2021, becoming a market again with depth and stronger valuations.
It is no coincidence that the Greek stock market at the beginning of 2021 had only three participations in the MSCI Standard Greece index and now has six, after the addition of Eurobank, Alpha Bank and PPC.
At the same time, it should be noted that the majority of the capital increases - with the exception of part of Piraeus Bank and perhaps Aegean Airlines – did not have a recapitalization nature. They were funds drawn aiming to expand the business and not to cover losses from the past. We must not forget that the Greek market, during the last 12 years of the financial crisis and the bailout, has lost a lot of its international prestige, but also its contact with international funds. The market was significantly isolated from the international developments of the stock exchanges, slipping into developing status, while leading shares were downgraded on the MSCI and FTSE Russell indices, or were completely dropped.
Bond issues
Seven new issues stood out in corporate bonds: Motor Oil with 200 million euros, Prodea REIC with 300 million euros, Costamare with 100 million euros, CPLP Shipping Holding with 150 million euros, ElvalHalcor with 250 million euros, Noval Property 120 million euros and GEK Terna with 300 million euros.
That is, 1.42 billion euros were raised, which is an all-time record for the relatively newly formed corporate bonds market, which began in October 2016. In 2020, 1.02 billion euros were raised through three issues, while three had completed each year in 2019 and 2018 and four in 2017.
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