Ithmaar Bank pursues major expansion through Initial Public Offering

Ithmaar now proposes to reconstitute itself as a Bahrain Shareholding Company, issuing an additional 150,000,000 shares at a premium through one of the largest IPOs by any investment bank in Bahrain, and listing itself on the Bahrain Stock Exchange (BSE). Thereafter, a second listing is expected to be undertaken on another major GCC stock exchange to enhance shareholder value.

The IPO proceeds will be used partly to recapitalize already successful subsidiaries and affiliates enabling them to fully exploit profitable opportunities in their respective markets.

"The net proceeds of the Private Placement and IPO will be used by Ithmaar to pursue its ongoing expansion and diversification strategy in the growing investment banking sector in Bahrain and the Region."

"While already a well established bank with operations across the Middle East, Europe and Asia, the funds raised will help Ithmaar to pursue further growth and establish itself as a truly competitive investment bankin the region"

said Mr. Khalid Abdulla Janahi, Chairman, Ithmaar Bank.

The IPO would be launched in the first quarter of 2006 after obtaining relevant regulatory approvals. Shamil Bank has been appointed the Lead Issue Manager and Financial Advisor for the IPO while KPMG has been appointed as the Co-Financial Advisor.

"We are confident that the IPO will be well received by investors," said Mr. Mohamed Hussain, Chief Executive, Shamil Bank.

"The IPO will be offered to investors at an attractive price that will create high shareholder value. It will strengthen Ithmaar Bank, allowing it to act as a catalyst spawning development projects in the GCC and contributing to economic growth opportunities down the line."

The Bank's strength comes from its subsidiaries and affiliates which are engaged in Sharia'a compliant finance, investments and insurance through a range of businesses, including retail banking, commercial banking, investment banking, takaful, leasing and asset management.

"The Bank has highly professional management teams in each of its business units including its operations in Switzerland, Pakistan, Saudi Arabia and Bahrain. The IPO would help establish Ithmaar Bank as a major player in the GCC market, said Mr. Jamal Fakhro, Managing Director, KPMG."