Bulgarian real estate investment trust (REIT) Balkan Property Instruments [BUL:BPI] said it will issue up to 4.5 million warrants at a price of 0.001 levs ($0.0005/0.0005 euro) apiece by way of an initial public offering.
Balkan Property Instruments plans to issue 4.5 million warrants, allowing holders to subscribe for shares at 11 levs each within five years. The company disclosed this in a filing with the Bulgarian Stock Exchange on Monday.
The placement will be successful if at least 450,000 warrants are subscribed and paid for. The funds raised will be used for real estate activities such as acquisition, development, construction, and sales.
ABV Investments will act as the intermediary for the transaction, which was approved by Bulgaria’s financial regulator last week.
The company’s equity capital consists of 65,000 shares, each with a par value of 10 levs, according to commercial register data.
Balkan Property Instruments’ shares last traded at 6.20 levs on the BaSE market of the Bulgarian Stock Exchange, with the warrant price set higher at 11 levs, reflecting confidence in future growth.