Eutelsat Shares Under Pressure Following Major Equity Raise

The stock of European satellite operator Eutelsat is experiencing significant selling pressure. This decline persists despite recent analyst commentary that views the company’s strengthened balance sheet more favorably. The central question for investors is whether this improved financial foundation can restore confidence in a share price that has fallen sharply.

The primary catalyst for the current weakness is a completed capital increase totaling €1.5 billion. Eutelsat issued 496.1 million new shares at a price of €1.35 per share. The final tranche of €670 million was notably oversubscribed by 133%, with demand reaching €892 million. Nevertheless, the market is reacting negatively to the expansion of the share capital, which now stands at 1.178 billion shares.

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