Sudan's Al Salam bank set to launch USD18.75m IPO

The offer opens on Saturday, October 9, 2004 and closes a month later on Monday, November 8. It will be open to investors from any Arab country and they can subscribe through specified centres.

Investors in Sudan can subscribe through Omdurman National Bank and Byblos Bank of Africa. Investors in the UAE and other GCC countries have been advised to apply through Abu Dhabi Islamic Bank, Dubai Bank and First Gulf Bank, while those in the Levant must apply through the Lebanese Canadian Bank.

Omdurman Bank will lead arrange the IPO in Sudan, while Amlak will arrange the offering outside the country.

The Bank's capital has been set at US$75 million and 75 million shares have been issued with a face value of $1 each. The founders covered 75 per cent of the capital equivalent to $56, 250,000 from their own resources. It is the remaining 25 per cent of the company's capital, with a nominal value of $18.75 million, that is being made available through the public offering.

Once Al Salam Bank is established it will have the largest capital of any bank operating in Sudan. The founders' council of the bank has five members. These are Mr Mohamed Ali Alabbar, Mr Hussein Mohammed Al Meeza, Mr Saleh Saeed Lootah, Mr Salem Rashid Al Muhanadi, and Mr Mohammad bin Omair bin Yousif.

Mr Al Meeza said: "The establishment of the bank is the result of the desire of a group of Arab and Sudanese investors to have such an institution operating completely under Shariah laws available to them and to other customers inside the country. We believe that this bank, which will offer the highest standards, international practices and top quality services, will contribute positively to the development of the sector in Sudan.

"We will make every effort to provide the services that will be needed to accompany the economic development of Sudan. We regard this initiative as contributing to the development of a neighbour and we are assisting by passing on our experience of the banking sector. The intention is that the Al Salam bank will help to stimulate the investment environment in Sudan."

The banking sector in Sudan is the only national system that is totally Islamic Shariah based. It has enjoyed this status since 1992. Recently, the sector has seen rapid growth and this is expected to accelerate as economic reconstruction in the country progresses and production from Sudan's oil fields steps up a gear.

The founders' council has high expectations for the bank and forecast rapid growth and a significant market share within four years, based on its relatively large capital base and the advanced technology it anticipates using.

The bank's list of founders includes VIPs and financial institutions in Sudan, UAE, Saudi Arabia, Lebanon, Jordan, and Bahrain. These include the Investment Office of Dubai, Amlak Finance, Lebanese Canadian Bank, the State of Khartoum, and The National Fund for Social Security. As soon as the offering ends, the bank's stock will be listed on the Khartoum and Dubai financial markets.