MADRID, March 22 (Reuters) - Shares in Spain's state-owned bank Bankia were valued at 0.01 euro as the bank prepares to receive a 10.7 billion euros capital injection from European rescue funds, the country's bank rescue fund, or FROB, said on Friday.
The bare-minimum valuation wipes out the investments of 350,000 Spaniards who bought shares in Bankia in 2011, when it was formed by merging seven savings banks.
Bankia shares closed on Friday at 0.25 per share. When the bank went public it was worth 3.75 per share.
After the capital injection, Bankia will conduct a reverse share split, converting 100 shares into 1 share. The new shares will each be worth 1 euro. (Writing by Fiona Ortiz)