BankMuscat GDRs debut on London Stock Exchange

In a ceremonial opening, Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman of BankMuscat, opened the trading session on the London Stock Exchange at 8.00 a.m. London time to mark the first day of unconditional trading in the Bank's GDRs.

On Monday, 3 October, Citigroup, the global coordinator and sole bookrunner of the Bank's maiden GDR offering, decided to exercise the over-allotment option that allowed the size of the issue to increase to US$163 million, comprising 6,878,765 newly issued ordinary shares in the form of GDRs (including 625,342 GDRs issued with the exercise of the over-allotment option) Priced at US$23.75 per share, the BankMuscat GDR issue, which was priced last week, has been oversubscribed multiple times. Each GDR represents one ordinary share of BankMuscat, which currently trades on the Muscat Securities Market.

Speaking on the occasion, Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman, BankMuscat (SAOG) said: "I am glad to share that our GDR issue has met with an overwhelming response from leading fund managers and financial institutions from across the world. That indeed is a strong vote of confidence in a bank that is still relatively young, in comparison to many respected institutions in this part of the world.

As a bank that aspires to become one of the leading financial institutions across the GCC region, and is seeking to continually enhance shareholding value, the GDR listing holds a very special significance for us: as we are today the first bank from across the GCC region to be listed on the LSE. What makes it even more special is the fact that we are the first organization from the Sultanate to have represented Oman to the international investor community."

Welcoming BankMuscat to the Exchange, Martin Graham, the London Stock Exchange's Director of Market Services, said: "We are delighted to welcome BankMuscat, the first company from the Sultanate of Oman, to the Main Market. By listing in London, BankMuscat will benefit from access to the largest pool of international capital in the world, and exposure to world-leading regulatory and corporate governance standards. The fact that BankMuscat's offer was multiple times oversubscribed demonstrates the appetite the global financial community has for companies from the GCC region."

Chris-Gibson Smith, Chairman of the London Stock Exchange also presented Sheikh AbdulMalik with a plaque in a ceremony that was attended by many dignitaries including the Ambassador of the Sultanate of Oman, HE Mr Hussain Ali Abdullatif, and Mr Ahmed Saleh Marhoon, Director General of the Muscat Securities Market. Senior officials from Citigroup and legal firm Cleary Gottlieb, Steen & Hamilton also attended the welcoming ceremony.

BankMuscat, which enjoys 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. The Bank generated net profit of US$88.6 million and as of 30 June 2005, had shareholders' equity of US$527.5 million.

BankMuscat plans to use the proceeds raised from its GDR issue to finance its aggressive international expansion plans and help strengthen its position in the domestic market.

Congratulating BankMuscat on their successful GDR issue and commending the London Stock Exchange, Ahmed Saleh Marhoon, Director General of the Muscat Securities Market said: "The London Stock Exchange has always inspired the respect of the global financial community for its efforts to develop a strong, transparent and well-regulated market. Based on the same principles and desire to protect investor interests while providing them with healthy investment opportunities, the Muscat Securities Market has today emerged as one of the strongest and best regulated bourses in the GCC region.

"Thanks to BankMuscat, a new chapter has today begun in this relationship, which will hopefully lead to us getting to know each other better and working even closer together."

Since its inception in 1982, BankMuscat has adopted a growth strategy that embraces both organic and non-organic growth options. The Bank currently has a network of 90 branches in Oman and a representative office in Dubai (UAE). BankMuscat also has a strategic stake in Centurion Bank, a private sector bank in India that has a strong retail presence across India and has recently set up BankMuscat International (BMI) an independent Banking entity that is focused on becoming a truly GCC regional bank.

Asked to comment on the Bank's plans for the future and whether it would consider such options to raise its capital in future, Sheikh AbdulMalik said: "We are open to all possibilities that we believe will best serve the interests of the bank and valued stakeholders. The GDR is significant step toward realizing our vision. The faith reposed by the global investment community in our vision, current position and plans for the future, gives us immense confidence that we are indeed on the right path and have a bright future ahead of us."