Friday, November 12 2021 13:05

ArmInfo.ACBA Bank has completed a major public placement of shares to the amount of AMD 7.5bln, with the resulting number of share-holders exceeding 5,200  and the bank showing the leading figures, the bank's press service  told ArmInfo. The issue commenced this September, with 500,000 shares  offered and 5,639 bids recorded. 

ACBA CEO Hakob Andreasyan said: "Our ends and wishes before the  public offering of shares concerned not only ourselves, but also our  country, economy and future of our society. We have great potential  to do more for our country that we have done so far. Of course, all  this is to the credit of our shareholders and staff. This step has  made us the pioneer company for other to follow suit. I should say  that the placement process has been excellent and we have made sure  that ACBA is a most important unit in our country with fine repute  and trust, which is thinking about the country's future and doing its  best for others to follow our example. 

"The last couple of days, when the demand for shares increased  dramatically, we realized we have yet much to do. We have great  untapped potential and we must develop our projects to the best of it  and attract as many supporters as possible. This placement is  supposed to make us an effective and profitable structure for our  shareholders. At the same time we should not forget about the  non-financial aspect, which implies that we all must become a  locomotive for society and play a more important role in social life. 

"I am grateful to our shareholders for their trust. We'll do out  utmost to come up to their expectations and build up out future  together. Our projects will be aimed at the country's development and  forming a new culture in society. I mean forming and disseminating  the culture of shareholding. At present we have 5,200 shareholders,  which is evidence of our being a popular bank," Mr Andreasyan said.   ACBA BANK announced the issue of shares on September 13, 2021 -  500,000 shares worth a total of AMD 7.5bln (at offering price).  According to the issue prospectus (offering memorandum), the nominal  price of each share is AMD 10,000, with the offering price being AMD  15,000. That is, the nominal issue is worth AMD 5bln, with the total  offering price is AMD 7.5bln. 

The funds to be received from the public offering are expected to be  invested in Armenia's economy - agriculture, new infrastructures,  effective use of water resources and a number of other fields, which  will contribute to harmonious development of communities and  environmental protection. 

According to the ArmInfo Financing Ranking of Armenia's Banks of  September 30, 2021, the authorized capital of ACBA BANK totaled AMD  50bln (ranked 4th). The bank's aggregate capital is AMD 75.3bln  (ranked 3rd). By the end of this October the bank's profit had  exceeded AMD 10.8bln. In Jan- Sept 2021, the bank's net profit  totaled AMD 7.4bln (ranked 3rd) - with a 3-fold year-on-year  increase, with a 4.6-fold increase in the net profit in the 3rd  three-month period alone - up to AMD 5.5bln (ranked 1st).  As of June  30, 2021, the ACBA BANK shareholder were ACBA Federation (95%) and  SJSC "Sacam International" (an Credit Agricole member) - 5%. On Sept.  30, 2021, the AMD/UDS exchange rate was AMD 484.20/$1. 

Armeconombank had traditionally been the leader of Armenia's banking  sector (5,207 shareholders as of June 30, 2021). But it has now  yielded the palm to ACBA BANK. At present, the share of ACBA  Federation in the bank is 92.05% against the previous 95%, with the  share of SJSC "Sacam International" (an Credit Agricole member)  remaining 5%. The rest 2.95% of shares are distributed among ACBA  Bank, ACBA Federation and ACBA Leasing staff members.