Atos SE's Capital Increase: A Massive Dilution for Shareholders

Atos SE, a global leader in digital transformation, recently announced the final amounts of the subscriptions to the Reserved Capital Increases for creditors under the Accelerated Safeguard Plan. This move, while aiming to restructure the company's finances, is expected to have a significant impact on Atos' share capital and shareholder dilution. This article explores the implications of this capital increase and its potential impact on Atos' share price and investor sentiment.

Atos SE is set to issue a total of 115,860,932,658 new shares, broken down as follows: 27,166,773,007 New Shares subscribed by Non-Participating Creditors at €0.0663 per share, 84,857,868,064 New Shares subscribed by Participating Creditors at €0.0132 per share, and 3,836,291,587 New Shares subscribed by Participating Creditors at €0.0037 per share. This massive issuance of new shares is likely to dilute the value of each share, potentially leading to a decrease in the share price.



The subscription prices for New Shares issued to Non-Participating Creditors and Participating Creditors differ significantly. Non-Participating Creditors subscribed at a higher price, possibly due to their lower risk profile, while Participating Creditors accepted a lower price, indicating a higher risk tolerance. This pricing structure reflects the different risk appetites and positions of the creditors, with Non-Participating Creditors valuing the shares more highly due to their lower risk.



The completion of the Reserved Capital Increases will result in a substantial dilution of Atos' existing shareholders, which could have a very unfavorable impact on the share price. The total number of new shares issued is 115,860,932,658, representing a dilution of approximately 61.5% for existing shareholders. This significant increase in the share count is likely to dilute the value of each share, potentially leading to a decrease in the share price.

Atos SE's capital increase is a strategic move to restructure the company's finances and equitize a significant portion of its debt. However, the massive issuance of new shares is expected to have a substantial impact on Atos' share capital and shareholder dilution. Investors should closely monitor the situation and consider the potential implications for the share price and their portfolios. As the financial restructuring plan unfolds, Atos' future prospects will become clearer, and investors can make more informed decisions about their investments.