Belarus’ largest drugmaker held the country’s first initial public offering Wednesday as companies seek to raise domestic funds amid a shortage of foreign currency.
State-owned Borisov Plant of Medical Substances was selling a 15 percent stake at 476,000 Belarussian rubles ($95.60) per share on Minsk’s Belarussian Currency and Stock Exchange, the Finance Ministry’s securities department said in an e-mailed statement.
Belarus is seeking loans from the International Monetary Fund and Russia as it struggles to bridge a current-account gap equal to 16 percent of gross domestic product last year and to lure foreign investment into the centralized economy.
“Before, shares were sold to closed circles of investors,” Valery Postovsky, director of the plant’s underwriter, Brostok, said in an interview in Minsk. “This is the first time shares are available to anybody willing to buy them — from individuals to major investors.”
Belarussian law has allowed IPOs since 2007, according to the Finance Ministry.
“The crisis was actually good for us,” Alexander Fando, director of Borisov Plant, known as Borismed, said June 15 in Minsk. The currency’s 36 percent devaluation reduced the plant’s market value, making it more affordable for investors, he said.
Borismed was established in 1965 and has 40 percent of the Belarus market. It exports 60 percent of its output, mostly to Russia and Kazakhstan.
This first share offering will help the ministry estimate whether there is demand for open share sales. “This is a rehearsal for future IPOs abroad,” the statement said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
