Reducing Saipem's FVE to EUR 1.97 to Incorporate Impact of EUR 2 Billion Capital Increase

We’re resetting Saipem’s fair value estimate to EUR 1.97 after incorporating several corporate actions, culminating with the firm’s recent, and highly dilutive, EUR 2 billion capital increase. In the last few months. This replaces our previous valuation of EUR 63, which was calculated in error during this series of transactions. Saipem recognized a share capital decrease of EUR 1.7 billion, then executed a 21-for-100 reverse share split and a 1-for-10 reverse share split that cumulatively reduced the firm’s total shares outstanding from 1 billion to just 21 million. Then it announced a cash call in which it would attempt to raise $2 billion by issuing 1.974 billion shares at EUR 1.013, which was about one third of the market price at the time.