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No. The process is voluntary. According to share prices of banks and personal choice for investment, each shareholder may exercise their right fully or partially when they want to. If they consider that it is profitable to do so, if stock prices have not risen, they are not obliged to give money, even five years after the capital increase.

What will I earn if stock prices rise?

The greatest benefit for those who have warrants is that they will see their profits multiply if the share price on the stock exchange rises. For example, if during the capital increase a shareholder has acquired 1,000 shares for 1 euro each, together with these they will also acquire warrants for the purchase of 9,000 shares (9 shares for every 1 purchased). If after three years shares are negotiated for 1.3 euro, the profit is generated in the following way: in order to exercise their right of conversion of warrants into shares, they will pay a total of 10,420 euro (9,000 shares for 1 euro plus the cost of holding for three years). In parallel, they will sell a total of 10,000 shares for 13,000 euro, that is, they will earn 2,580 euro – a 258% return from the original investment. The profit increases if the share price rises more.

That is, if after three years the share is worth 1.6 euro, the total profit will be 4,580 euro - more than 4.5 times the initial capital. Since warrants will be negotiated on the secondary market as well, holders can negotiate them directly without converting them into shares. Accordingly, if the stock price falls, losses will amount to only the cost of the initial capital. That is, if the price of a share is 0.80 euro, the investor will lose only 200 euro.

I have bank shares, should I sell them or should I participate in the capital increase?

Those who have already sold their bank shares in recent weeks have apparently won since, just within a few days, banks suffered losses exceeding 30%. This means that for the same money they can either buy more shares or retain part of their availability in order to participate in the bank capital increase. There is no right answer, in both cases there is a risk.

I want to participate in the share capital increase. When is it profitable for me?

According to bankers and financiers, the appropriate term for someone to decide what to do is after things are clarified with regard to the price increase. Therefore, even if they lose some opportunities that will arise due to the high variability, investors will know exactly what money they will have to give, and whether it is profitable to buy shares or warrants when they start negotiating these.