Unknown investor buys unrealized portion of the additional shares of International Bank

The JSC "International Bank of Azerbaijan" (IBA) has successfully completed on July 22 the  issue of placement of shares worth 200 million manat. The placement of shares began on 12 December, 2013. In April this year, the current shareholders have lost the right to buy shares proportional to their share. Only 20,533,312 shares of the total amount of 5338 AZN 661.12 remained unsold. In the placement of securities participated several investors. Yesterday unknown investor bought the remaining shares totaling 4938 530.74 manat. The shares were placed at their nominal value.

Thus, the paid-up share capital of OJSC "International Bank of Azerbaijan" reached 568.3 million manat.  For  July 1 this year, the IBA assets exceeded 8 billion  manat, and total capital - about 1 billion manat. In the first half net profit on revenue of 330.2 million manat totaled 29.7 million manat.

According to the capitalization strategy adopted in 2013, the  IBA plans to attract  from shareholders in 2015-2017 annually 100 million manat.

It is noteworthy that the increase in capitalization is ongoing under  the fall of the market value of the IBA: the nominal value of shares of the bank  worth 26 gapik today is  offered to the market  at 15-16 gapik.

In 2011 the government again returned to the idea of privatization of state shares in OAO "IBA", which is 50.2%. An  international consultant was selected. However,  nothing is reported about the assessment  of the  market value of the bank and negotiations with potential investors. --08D--