Pasha Bank to mediate while holding first IPO in Azerbaijan

Business Materials 10 September 2013 20:45 (UTC +04:00)

Azerbaijan, Baku, Sept. 9 / Trend, A. Akhundov /

Azerbaijani Pasha Bank will mediate while holding the first IPO in the country, chairman of Pasha Bank's board Farid Akhundov told media on Monday.

According to him, customers and experts within the bank are being trained.

"The company is beginning to sell its shares through an IPO and must be ready in terms of corporate governance and financial reporting," he said. "Moreover, the market itself must be prepared. We will have time to spend one IPO until the end of the year and at least another one next year in case of successful scenario."

The company, which name has not been disclosed, is a small medium-sized enterprise in Azerbaijan. It intends to place up to 20 percent of its shares on the local market. While speaking of income, planned to be received by the company as a result of this operation, Akhundov said that the matter rests in several million manat.

"There are less sources of income for people who want to place their funds," he said. "The single source is the bank deposits, which bring about 10 percent of revenues per year. The companies' shares may be profitable. Of course, it is accompanied by certain risks, but there are also factors mitigating these risks."

Pasha Bank was established in June 2007 and operates under a licence from the Central Bank of Azerbaijan dated Nov.28, 2007.

Pasha Bank has been rendering market maker services and quotes for bonds in real time through Pasha Capital since 2013.

Pasha Bank provides has been rendering daily quotations of securities of the Azerbaijan Mortgage Fund, "Unibank", "Unileasing", "Bakcell LLC", "Bank of Baku", "AGBank", non-bank credit organization "Finca Azerbaijan" since January 21, 2013.

The official exchange rate is 0,7844 AZN/USD on Sept. 10.