Belarus to Host IPO First Time

15.06.2011 14:25

Borisov Plant of Medical Preparations announced public offering of 125.5 thousand shares (about 15% of the enterprise share capital) in the stock market. Organizers plan to raise funds of the Belarusian and foreign investors. This is the first case of an IPO in Belarus, reported director of Brostok in Minsk, Valeri Postovski, on June 15.

Sale of shares, scheduled for June 29 — July 12, will be held in rubles for residents of Belarus, as for non-residents — in Russian rubles, dollars or euros at the official rate of National Bank of Belarus on the day of transaction. Price per share is Br476.01 thousand, BelTA informs.

As noted by CEO of Borisov Pharmaceuticals Plant, Alexander Fando, the shares are sold to raise cash resources and a strategic investor, since 100% government share in the authorized capital doesn’t appeal to investors.

According to him, «the fewer are the participants, the easier is the management of society.» Alexander Fando said that the question of the number of shares, sold in one hand, was not on the table. The amount of additional issue is Br59.7 billion; the state stays aside. According to the CEO, the company is not sure to collect the full amount, but half of it is out of the question. «I am confident in the success of this work. It is important that we are not only the first, but that we keep pace with the time,» he said.

IPO is initial public offering of shares for sale to the population. The company has first brought them out to the stock exchange, offering them to the public.