BAKU, Azerbaijan, June 13. The initial public offering (IPO) of the International Bank of Azerbaijan's (IBA) shares on the Baku Stock Exchange (BSE) will start in September, Trend reports.
According to BSE, the subscription period for IBA shares, which are part of a new issuance of 322 million units at a nominal price of 27 gapiks (16 cents) per share, runs from June 11 through September 10.
"The placement time on the trade platform of exchange will be announced to the public within two working days from the end of the subscription period and placement will begin within five working days from the end of the subscription period. The posting period for subscription is a maximum of seven working days," the BSE statement said.
The statement pointed out that according to IBA Chairman Abbas Ibrahimov, after the full placement of the newly issued shares, the share of private investors in the bank's charter capital will be 10 percent, while the state's share will decrease to 90 percent.
He mentioned that the main goal of the public offering is to attract private investors and small shareholders. In this regard, a maximum subscription limit of 75,000 shares, amounting to 20,000 manat ($11,760), has been set for one investor.
"This will allow as many of our citizens as possible to become shareholders of the bank and take advantage of alternative investment opportunities, which will have a significant positive impact on the country's securities market.
For six years, IBA has been paying dividends to shareholders annually. With the further development of the bank and increased profitability, the target dividend yield will exceed 15 percent," said the head of the bank, as quoted in the BSE statement.
To note, the Baku Stock Exchange, which plays a strategic role in ensuring the economic development of the region and facilitating the access of interested parties to the capital flow, supports the development of financial markets by ensuring reliability for investors and accessibility for issuers with these efforts, which are the basis of economic stability and growth in the region.