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Avio's stock market plunges as it awaits a decision on its capital increase

A possible 300 million Euro increase. But Leonardo might not participate

Shares of the Italian aerospace company Avio are plummeting on the stock market. Trading began yesterday afternoon following rumors of a possible capital increase of as much as 300 million Euro. However, the news has not yet been confirmed: the company's board of directors, which met today to approve the financial report for the first half of 2025, is awaiting its assessment.

What's surprising is that Avio's shareholders reportedly have no agreement regarding the capital increase: Leonardo, which holds a 29% majority stake, apparently does not want to participate. It believes other strategic assets are a priority; however, this decision would significantly dilute its position within the company.

A capital increase at this time could be useful for Avio to strengthen its international presence, particularly in the United States, and to remain competitive with other foreign players. It would also be especially useful for incentivizing engine development in the USA. Given the geopolitical context and funding, such as the European ones linked to the Safe program, this could be a good time to support the company's business.

Today, however, the stock price hit a low of 31.75 Euros. Currently, close to market close, the figure stands at 35.15 Euros, down 0.30 Euros (0.85%). This figure is actually part of a very positive context for Avio: in the last 12 months, the stock has seen an increase of 170% and 145% since the beginning of the year. Despite this, and although the current economic and geopolitical context is prosperous for a company like Avio, tensions and potential disagreements among shareholders are creating uncertainty regarding future strategies, with the risk of slowing its growth.

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AVIONEWS - World Aeronautical Press Agency
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