Each of the new shares will have a nominal value of BGN 1 and an issue value of BGN 8.
The new share issue will allow First Investment Bank to attract fresh financial resources and, at the same time, raise up to BGN 200 million top-quality capital.
The bank intends to use the capital increase to ensure implementation of its strategy to expand its market presence in retail banking and SME lending.
After the issue of the new shares, the total share capital of the bank will increase from BGN 110 million to BGN 135 million. As of March 31, 2020, the bank’s regulatory equity amounted to BGN 1,365 million.
The shares’ carrying value is based on the audited financial statements of the Bank as at the end of 2019, and amounts to BGN 8.57 per share on an individual basis and BGN 8.87 per share on a consolidated basis. In order to attract wider interest among investors, the issue price of the new shares includes a 10% discount over the book value per share on a consolidated basis.
At the end of March, the book value of the Bank’s shares increased further to BGN 8.63 per share on an individual basis and BGN 8.90 on a consolidated basis. The earnings per share for 2019 amounted to BGN 1.25. This capital increase will be considered successful if at least 2,500,000 shares are subscribed and paid.