DZI BANK ISSUES TEN MILLION NEW SHARES ON CHRISTMAS EVE
The trading in rights to purchase DZI Bank newly-issued 10 million shares of BGN1 face value will last from December 22 till January 4, the Bulgarian Stock Exchange announced. The sale revenues will help the bank raise its capital from BGN40MN to BGN50MN. The decision was taken at the DZI Bank general meeting held on November 12.According to the prospectus for the offering, each shareholder of the bank will be allowed to subscribe for a new share proportional to the share he already owns in DZI Bank's capital. At present, the largest stake consisting of 50.09% of the capital is owned by the DZI insurance company. The company is allowed to subscribe for slightly more than a half of the shares in the new issue with a total face value of BGN10MN. In case a shareholder decides not to exercise his right, he may sell the right to purchase new shares on the stock market from December 22 to January 4. The issue will be considered successful if at least eight million of the newly-issued shares are sold. If any rights have remained unsubscribed for at the end of the period, they will be sold on a special auction scheduled for January 13. In the period ending January 28, 2005, the rights will be exchanged for shares of DZI Bank.The shares in the new issue will be traded on the stock market by the DZI Invest intermediary which makes part of the DZI financial group together with DZI Bank. The payment for the newly-issued shares will be carried out through a special account opened with Post Bank.According to the DZI Bank strategy, revenues from the sale of the new issue will be invested in the development of three sectors. BGN4.5MN of the money will be used for purchase of bonds of low risk and relatively good yield. Another BGN4MN will be spent on home and mortgage crediting as the bank will attempt to expand its market presence in that sector. The remaining BGN1.5MN will be invested in the development of DZI Bank information technologies.