The subscription period for PASHA Bank shares has ended
In accordance with the prospectus and applicable legislation, the final results of the subscription period will be formalized in the coming weeks. Once all orders are confirmed, the allocation of shares among investors will be carried out.
Offering Price per Share: 55 AZN
Total Issue Size: 932,926 shares
Subscription Period: April 13 – June 12
Offering Method: Public offering / Subscription
Type of shares: Ordinary shares
Issuer: PASHA Bank OJSC
PASHA Bank Shares
What is an IPO?
An Initial Public Offering (IPO) is the process by which a company offers its shares to investors on the public market for the first time. An IPO is a transformational process that reshapes a company’s governance philosophy, corporate culture, and approach to sustainability.
Placement of share orders
1
Priority will be given to orders submitted by individual investors
2
Orders from legal entities will be executed after all orders from individual investors have been fully satisfied
Moody's Rating
The Bank’s long-term local and foreign currency deposit rating – “Ba2”
2026
S&P Global Ratings
Long-term and short-term credit rating: BB- / B
2026
Our international ratings
Summary of Financial Indicators
2023
2024
H1
H1
2024
2025
H1
H1
Dividends Paid (AZN ‘000)
60,000
100,000
154,122
39,997 *
Dividend Payout Ratio
58.9%
44.3%
68.3%
18.3% *
Net Profit (AZN ‘000)
225,712
112,268
218,266
95,952
Total Assets (AZN ‘000)
8,893,428
8,839,139
8,618,564
9,316,551
Net Interest Margin
5.0%
2.3%
4.4%
2.0%
Return on Assets (ROA)
2.5%
2.6%
2.5%
2.3%
Return on Equity (ROE)
30.5%
25.7%
25.2%
21.2%
Cost-to-Income Ratio (before credit loss expenses)
0.5%
0.5%
0.5%
0.6%
Based on prudential reports, the total dividends paid for 2025 amounted to 129 million AZN, with a dividend payout ratio of 59%.
*
A dividend is the portion of the Bank’s net profit intended for distribution among shareholders in proportion to the number of shares they hold.
The Bank ensures dividend payments under the following conditions:
The amount of profit allocated for dividend payments (after taxes), or a certain percentage thereof, is calculated in accordance with established procedures and approved by the General Meeting of Shareholders.
The Bank’s dividend policy is aimed at maintaining a balance between providing returns to shareholders and preserving capital sustainability. Accordingly, the dividend payout ratio is expected to be within the range of minimum 30–40% of net profit; however, this ratio may vary depending on regulatory capital requirements, retained earnings needs, and the Bank’s medium-term development objectives.
The Bank ensures dividend payments under the following conditions:
- When the Bank’s financial position is assessed as stable or positive and there are growth prospects;
- When there are no restrictions on dividend payments under the legislation of the Republic of Azerbaijan;
- When a relevant decision is adopted by the General Meeting of Shareholders.
The amount of profit allocated for dividend payments (after taxes), or a certain percentage thereof, is calculated in accordance with established procedures and approved by the General Meeting of Shareholders.
The Bank’s dividend policy is aimed at maintaining a balance between providing returns to shareholders and preserving capital sustainability. Accordingly, the dividend payout ratio is expected to be within the range of minimum 30–40% of net profit; however, this ratio may vary depending on regulatory capital requirements, retained earnings needs, and the Bank’s medium-term development objectives.
Dividend Policy
FAQ
The shares of “PAŞA Bank” OJSC (hereinafter referred to as PAŞA Bank or the Bank) are ordinary shares issued by the Bank. By purchasing these shares, an investor becomes a shareholder and gains certain rights, including:
- the right to receive dividends from the Bank’s net profit;
- the right to participate in general shareholders’ meetings;
- the right to vote on key matters included in the meeting agenda.
A dividend is a portion of the Bank’s profit distributed to shareholders.
The amount an investor receives depends on the number of shares they own.
The amount an investor receives depends on the number of shares they own.
Dividend yield shows the return an investor earns from dividends relative to the share price.
It is calculated as: annual dividend / share price
Example:
If a company pays 10 AZN per share in dividends and the share price is 100 AZN, the dividend yield is 10%.
It is calculated as: annual dividend / share price
Example:
If a company pays 10 AZN per share in dividends and the share price is 100 AZN, the dividend yield is 10%.
A dividend is the actual cash amount paid to shareholders.
Dividend yield reflects how much return that dividend represents relative to the share price.
The same dividend can result in different yields depending on the market price of the share.
Dividend yield reflects how much return that dividend represents relative to the share price.
The same dividend can result in different yields depending on the market price of the share.
Dividends depend on several factors, including:
- the Bank’s financial performance;
- regulatory capital requirements;
- decisions made by shareholders;
- the Bank’s future growth and investment plans.
- Therefore, dividends are not fixed and may change over time.
The first dividend payment is expected to be made in June or July 2026.
Additional dividend payments during the year may also be considered.
Additional dividend payments during the year may also be considered.
Dividends are generally expected to be paid once or twice a year, based on financial results and shareholder decisions.
No, dividends are not guaranteed.
Their payment and amount depend on the Bank’s profitability. Dividend yield also depends on market conditions and share price.
Their payment and amount depend on the Bank’s profitability. Dividend yield also depends on market conditions and share price.
Dividend yield will be determined once the IPO share price is finalized.
It is calculated based on dividends paid over the last 12 months relative to the share price.
Please note that:
It is calculated based on dividends paid over the last 12 months relative to the share price.
Please note that:
- future dividend yield cannot be guaranteed;
- it depends on both future dividends and market price;
- the Bank may provide guidance on dividends, but the yield is determined by the market.
Dividends are subject to a 5% withholding tax.
However, under current legislation, they are exempt from tax until February 1, 2028.
If applicable, the tax is with held automatically before payment.
However, under current legislation, they are exempt from tax until February 1, 2028.
If applicable, the tax is with held automatically before payment.
PAŞA Bank aims to distribute approximately minimum 30–40% of its net profit as dividends.
The actual payout will depend on financial results, regulatory requirements, and shareholder approval.
Example:
If the Bank earns 100 million AZN and the payout ratio is 40%, then 40 million AZN will be distributed as dividends.
The actual payout will depend on financial results, regulatory requirements, and shareholder approval.
Example:
If the Bank earns 100 million AZN and the payout ratio is 40%, then 40 million AZN will be distributed as dividends.
The record date is the date on which the list of shareholders eligible to receive dividends is determined.
To receive dividends, an investor must own shares on or before this date.
Example:
Record date: May 10
To receive dividends, an investor must own shares on or before this date.
Example:
Record date: May 10
- buy on or before May 10 → eligible for dividend
- buy after May 10 → not eligible for that dividend
Dividend announcements (including amount and record date) are approved by shareholders and published through:
- the Baku Stock Exchange disclosure system;
- the Bank’s official website;
- broker platforms and communication channels.
The Bank follows a balanced approach: part of the profit is distributed as dividends, while the rest is reinvested into the business.
This supports both:
This supports both:
- regular income for investors;
- long-term growth and value creation.
Funds are reserved during the subscription period.
If part of the funds is not used after allocation, it will be refunded within 7 business days.
If part of the funds is not used after allocation, it will be refunded within 7 business days.
If the order is not fulfilled, the full amount will be returned to the investor.
Allocation takes place within 5–7 business days after the subscription ends.
If demand exceeds supply, investors may receive fewer shares than requested.
Allocation priority:
Shares are allocated in whole numbers; remaining shares are distributed based on order submission time.
If demand exceeds supply, investors may receive fewer shares than requested.
Allocation priority:
- Retail investors (up to 20,000 AZN)
- Retail investors (above 20,000 AZN)
- Legal entities and other investors
Shares are allocated in whole numbers; remaining shares are distributed based on order submission time.
It helps ensure broader participation and prevents concentration of shares among a small number of large investors
Yes, once trading begins, shares can be sold through a broker on the Baku Stock Exchange.
Shares will be credited to brokerage accounts after the IPO is completed.
Trading is expected to start approximately 12 business days after the subscription ends.
Trading is expected to start approximately 12 business days after the subscription ends.
On the Baku Stock Exchange
Through their brokerage accounts and by monitoring market prices on the exchange.
- Funds are credited to the brokerage account on the next business day after the transaction.
- They can then be transferred to a bank account.
- The share price is determined by market demand and supply.
- It may increase or decrease.
A higher or lower share price does not necessarily mean that one company is more valuable than another.
Share price is influenced by several factors, including:
Share price is influenced by several factors, including:
- the number of shares in circulation;
- the company’s capital structure;
- financial performance and valuation metrics;
- overall market conditions and investor demand.
The IPO supports market development by:
- increasing retail investor participation;
- expanding the investor base;
- improving market liquidity.
The share price has been established as a fair value assessment of PASHA Bank, based on a comprehensive analysis conducted jointly by Management of the Bank, International Consultant and Underwriter.
It is important to note that the final pricing is ultimately determined by market dynamics.
It is important to note that the final pricing is ultimately determined by market dynamics.
During the subscription period of the Initial Public Offering (IPO), interest is accrued on funds transferred by potential investors for the purpose of purchasing shares. Interest is calculated at an annual rate of 5% (on an overnight basis) starting from one business day (T+1) after the transfer date.
The indicated interest rate is presented inclusive of applicable taxes. Where applicable, the accrued interest amount is credited to investors’ accounts after the relevant taxes have been deducted.
The indicated interest rate is presented inclusive of applicable taxes. Where applicable, the accrued interest amount is credited to investors’ accounts after the relevant taxes have been deducted.
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