Regulator of Uzbek securities market annuls Agrobank’s additional issue

Business Materials 14 March 2013 18:16 (UTC +04:00)

Uzbekistan, Tashkent, March 14 / Trend, D. Azizov /

The Uzbek Center for Coordination and Control over the Securities Market has annulled an additional issue of shares of open joint-stock commercial Agrobank at 113.799 billion Soums, a representative of the regulator told Trend on Thursday.

According to the source, the additional issue was canceled because the bank will not be able to fully place it according to the schedule.

"The funds raised while placing the shares of this issue will be returned to investors," the bank said.

It was previously reported that in early 2012, Agrobank started placing additional issue at 113.799 billion Soums, planning to increase capital share by 1.9 times - up to 240 billion Soums.

The decision to increase the capital and additional issue was taken at the general meeting of shareholders in December 2011. The center registered the issue of shares on January 18.

It was planned to place 98.556 million ordinary shares of 1,150 Soums each.

Currently, the bank's share capital has been fully formed to the amount of 126.201 billion Soums and consists of 109.24 million common and 500,000 preferred stocks with a nominal value of 1,150 Soums each.

Agrobank was formed from Pakhtabank in March 2009 upon a decree of the Uzbek president. The bank mainly issues loans and complex banking services rendered to enterprises dealing with agricultural production, including cotton and grain processing enterprises.

Agrobank's largest shareholders are the Finance Ministry and the Uzbek Reconstruction and Development Fund. Their joint share in the authorized capital is more than 50 percent. The rest shareholders own shares of less than five percent.

The official exchange rate is 20,307.3 soums/$1 on March.