Tuesday, 1 July 2014

AGD Bank shares sold ahead of IPO

Asia Green Development Bank, owned by tycoon Tayza, has reportedly been distributed to selected investors ahead of the initial public offering, said sources close to the bank.

Speaking on the condition of anonymity, the source said 20 per cent of shares were sold to Aye Nay Win; 10 per cent to Ayeyar Shwewar Company’s Aung Thet Mann, the son of Parliament Speaker Thura Shwe Mann; 20 per cent to the bank’s holding company Htoo Group and the remaining half to Mikko Food Marketing.

“I did not buy any shares of AGD Bank,” said Aye Nay Win to The Daily Eleven on Thursday.

When contacted for reaction, Mikko Food Marketing said its spokesperson was in a meeting before refusing to answer any follow-up calls.

“There are two parts when we say about shares. New shares will be brokered by Daiwa to be traded on the Yangon Stock Exchange in 2015. Presently they are not on public offering. If they will be placed on initial public offering, we would make an announcement. Meanwhile, our 1,486 employees working for one year or more would be offered to buy 1:1 ratio for new shares. I do not know about existing shares holding,” Soe Thein, AGD Bank executive director, said to The Daily Eleven on Friday.

In March, 2013, AGD Bank’s managing director Ye Min Odo said his bank would offer shares to the public by that year.

“We have become a public company since March. In September meeting, we will announce ourselves as the public company complete with facts and figures. Shares will be offered before the year’s end. Currently, we have not decided on the value of shares. Board of directors meeting will set the share price,” he said, though his remarks did not materialise.

AGD Bank has 40 branches across the country. It holds licenses for international banking and for foreign exchange. It offers a wide range of services.

In a report of the International Monetary Fund on June 17, the government has been urged to be discreet in giving banking licenses when it welcomes foreign banks to enter Myanmar. It pointed out that the authorised capital of the KBZ Bank, the largest bank in Myanmar, is still lower than that of a small bank in Thailand.

Opening a new bank in Myanmar requires the approval of the Central Bank. Similarly, the government’s approval is needed in turning a bank into a public company and selling shares to the public.

source: Eleven Myanmar
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