Ithmaar Bank signs with strategic partners for the upcoming IPO

The Ithmaar IPO, one of the largest in Bahrain, will offer 150,000,000 shares at a premium to the public, the proceeds of which will be utilized partly to recapitalize the bank's subsidiaries and affiliate companies as well as in other investment opportunities.

Commenting on the appointment of strategic partners to the IPO, Mr. Khalid Abdulla-Janahi, Chairman, Ithmaar Bank, said:

"We are launching the IPO in the backdrop of a booming economic scenario and are confident of its robust uptake by regional investors. The appointment of strategic partners reflects our strategy to align with best-of-the-breed financial institutions to make the IPO a resounding success."

The strategic partners include Shamil Bank as the Lead Issue Manager and Financial Advisor and KPMG as Co-financial Advisor. The bank has also entered into individual agreements with Global Investment House (Kuwait), Amwal (Qatar), Abraaj Capital (UAE), BBK (Bahrain) and Bahrain Pension Fund appointing them as Underwrites to the IPO.

Global Investment House (Kuwait) has been appointed as the Co-managers and Listing Advisors while Shamil Bank (Bahrain) and BBK (Bahrain) will act as the Receiving Banks for the IPO.

"The partnerships with these leading regional financial institutions take us one more step closer to the actual launch of the eagerly awaited IPO scheduled for launch on February 19, 2006. Given the unprecedented economic boom in the GCC and the record liquidity in the market, the timing, scale and scope of the Ithmaar Bank IPO would certainly offer optimum returns for the bank's shareholders and benefit the investors," Mr. Janahi said.

"We are delighted to have received an unprecedented interest in underwriting from institutions across the GCC. We are extremely pleased to partner with these prestigious institutions" he further added.

The partnership agreements were signed at a ceremony attended by Mr. Janahi, Mr. Graham R. Walker, Director of Ithmaar Bank and Mr. Mohamed Khan Hoti, Managing Director Investments of Ithmaar Bank, in addition to other signatories including Mr. Mohamed Hussain, Chief Executive of Shamil Bank, Shaikha Hanadi Nasser Bint Khaled Al Thani, Vice Chairperson & Managing Director of Amwal, Mr. Omar El-Quqa, Executive Vice President, Global Investment House, Mr. Arif Masood Naqvi, CEO & Executive Vice Chairman of Abraaj Capital, Mr Rashid Al Meer, Director General of Bahrain Pension Fund, Dr. Farid A. Al Mulla, General Manager CEO of BBK and Mr. Jamal Hijris, AGM - Retail Banking of BBK.

Dr. Farid A. Al Mulla, General Manager CEO, BBK, said: "The addition of Ithmaar IPO will help enhance our existing portfolio of investment services. We are confident that the IPO will trigger a wave of investor enthusiasm in the backdrop of the high liquidity in the region. It will also contribute to the expansion of investment opportunities and in turn the economic growth of the region."

In another significant development, Ithmaar Bank also signed a Modaraba agreement with Shamil Bank for about US$ 100 million. As per the agreement Ithmaar Bank will provide selected investors a firm allotment of shares.

Commenting on the Modaraba issue, Mr. Janahi said: "At Ithmaar Bank it has been our constant endeavour to ensure maximum returns to our shareholders. This Modaraba agreement is in line with our strategy to involve our shareholders in the IPO issue. By extending this offer to select institutions and HNIs in the region we also intend to broaden the scope of the IPO."

Mr. Mohamed Hussain, Chief Executive, Shamil Bank added: "We are indeed proud to be associated with Ithmaar IPO and the Modaraba agreement will enable us to offer a one-of-its-kind growth opportunity to our clients and select regional investors. This is also in line with our strategy to source cutting-edge investment opportunities to our clients who are keen to tap into the economic growth of the region."

Ithmaar Bank had announced its plans for the launch of its Initial Public Offering (IPO) in December 2005. Ithmaar will issue 60 million shares, pending allotment, to interest holders in DMI under private placement, and offer 150,000,000 shares at a premium through one of the largest IPOs by any investment bank in Bahrain. Thereafter, a second listing is being undertaken, subject to regulatory approvals, on the Kuwait Stock Exchange to enhance liquidity and to enhance liquidity and broaden investor participation.