BankMuscat GDRs meets overwhelming response

Citigroup, global co-ordinator and sole bookrunner of the US$ 149 milllion GDR offering by BankMuscat priced and launched the issue on 29 September 2005.

The issue comprised an offering of 6,253,423 newly issued ordinary shares in the form of GDRs from BankMuscat. BankMuscat has granted the managers an option to purchase up to 625,342 additional shares to cover over-allotments, if any.

The GDRs, which are expected to trade on the London Stock Exchange, were priced at US$ 23.75 (RO 9.144) per share. BankMuscat plans to use the proceeds to finance domestic growth and its international expansion plans. Each GDR represents one ordinary share of BankMuscat, which trade on the Muscat Securities Market.

Ecstatic at the response that the GDR issue had received, Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman, BankMuscat said: "We are extremely glad that the Bank's maiden GDR issue has met with such a strong response from the global financial community. This is definitely a glowing tribute to the economic potential that exists in the GCC region, the world-class financial regulatory infrastructure that we have in the Sultanate and the strength of BankMuscat and its future plans."

BankMuscat, with a market share of approximately 37% by total loans and 36% by total assets as of 30 June 2005, has a leading presence in retail banking, corporate banking, treasury and investment banking, asset management and private banking in the Sultanate of Oman. In 2004, BankMuscat generated net profit of U.S.$88.6 million and as of 30 June 2005, had shareholders' equity of U.S.$527.5 million.