The IPO of the country’s 12 th largest Corporate Bank was overbid 12 times at the auction held Friday last week. The issuer will place all shares of the 20% capital hike at the preliminary set price ceiling of BGN 58.5 per unit and will cash BGN 58.5mn (EUR 29.9mn) from the offering. The segment of market-priced bids, accounting for 70% of the 1mn new shares offered by the issuer, is overbid more than 14 times. Fixed-priced bids exceed supply by more than 6 times. The ratios of approval for market and fixed offers are set at 7.52% and 16%, respectively, leaving many smaller bidders out of the competition as they will not be able to qualify for the minimum possible purchase of 25 shares.

In face values, the shareholders’ capital of the bank will be raised to BGN 60mn from BGN 50mn. The market capitalisation set by the share price reached in the IPO is BGN 351mn (EUR 179.5mn). Secondary trade is expected to start in a few weeks and would most likely raise the bank’s market capitalisation by at least 30% to more than BGN 450mn, which is still a conservative expectation in view of the market capitalisation of BGN 568mn reached by its closest peer Central Cooperative Bank at the end of last week.

Corporate Bank is one of the fastest growing lenders in the country with total assets of EUR 514mn at the end of last year and more than EUR 600mn at present. The bank has posted a net profit of BGN 3.4mn last year and projects a net profit of EUR 11.1mn this year.