Al Khaliji pioneers fair allocation of shares following highly successful initial public offering

Notes and media contacts

About Al Khaliji

Al Khaliji was founded in Doha in January 2007. Since obtaining its commercial license at the beginning of the year, the bank's world-class management has set about creating the infrastructure that will allow Al Khaliji to provide a fresh approach to banking in a rapidly growing and evolving market.

Al Khaliji will be underpinned by the highest standards of service, easy to understand products, and reliable, innovative technology. Built in response to customer demand for a bank that is designed to meet their needs and their lifestyles, Al Khaliji will support its customers as their circumstances evolve over time.

A world-class management and highly trained staff will transform the banking experience of customers in Qatar and, through later expansion, the wider GCC. Al Khaliji will open its branch network to customers by the end of 2007

Al Khaliji IPO

On April 15th, Al Khaliji launched its Initial Public Offering (IPO) to Qatari investors. The offer period closed on April 29th 2007.

Qatari nationals were offered just under 17% of Al Khaliji's capital, or 120 million ordinary shares with a par value of QAR 10 per share. Investors paid 50% of the par value at the time of application, plus 2.5% of the par value as establishment expenses. To ensure the widest possible participation, applicants could apply for a maximum of 5,000 shares per person. Given the part paid structure, Al Khaliji sought to raise an initial QAR 600 million in capital from the IPO.

Following completion of the IPO, the bank's 191 founding shareholders, drawn from Qatar, Oman, the UAE, Kuwait and Bahrain will own 43% of Al Khaliji's authorized capital. Paid at 50%, their subscription in 312 million shares raised an initial QAR 1.56bn in ordinary capital. A recent Gulf-wide Private Placement of 288 million shares (again, paid at 50%) is raising another QAR 1.44bn, or 40% of the bank's authorized capital. In total, Al Khaliji will have an authorized capitalization of QAR 7.2bn.