Al Salam Bank IPO raises USD31 million and beats target by 65 per cent

There was an overwhelming response to the IPO from UAE and GCC investors and the result far outstripped expectations. Hussein Al Meeza, one of the founding council members of Al Salam Bank, said: "There was a huge response to the IPO throughout the region, despite other offerings by large companies. We believe the reaction to the offer reflects investors' confidence in the bank and in investment prospects in Sudan.

"The response exceeded our most optimistic expectations, and the way is clear to launch the bank as a Shariah-compliant public listed company. We intend to quickly move to a position where we are able to provide a wide range of Islamic finance products."

Al Salam's founders' council is scheduled to meet as soon as the allotment banks to decide on the shares allotment issue the final report for the allotment. The announcement of the allotment method should follow soon after decided by the committee. The council will also decide on the timing for refunding the extra money raised and this will be announced to public offering centres and investors.

Al Salam's capital has been set at $75 million and 75 million shares issued with a face value of $1 each. The founders covered 75 per cent of the capital equivalent to $56,250 million 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 was made available through the public offering.

Shares from the offering were available through various public offering centres in all Arab countries. For example, investors in Sudan were able to subscribe through Omdurman National Bank and Byblos Bank of Africa. Investors in the UAE and other GCC countries applied through Abu Dhabi Islamic Bank, Dubai Bank and First Gulf Bank, while those in the Levant used the Lebanese Canadian Bank.

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. Once Al Salam Bank is established it will have the largest capital of any bank operating in Sudan.

The bank's list of founders includes a number of VIP individuals and financial institutions in Sudan, UAE, Saudi Arabia, Lebanon, Jordan, and Bahrain. These include Investment Office, Amlak Finance, Lebanese Canadian Bank, State of Khartoum, and The National Fund for Social Security.

As soon the allotment process and the required establishment procedures are concluded, Al Salam Bank's stock will be listed during the first phase in the Khartoum Financial market and then at Dubai financial markets during its second phase.