Alizz Islamic Bank to launch IPO on 22 September 2012
- Oman: Sunday, September 16 - 2012 at 15:51
- PRESS RELEASE
Alizz Islamic Bank SAOG (Alizz Islamic Bank) will launch its initial public offering (IPO) of 400,000,000 shares on Saturday 22 September 2012.
Alizz Islamic Bank is promoted by Huriah Company LLC owned by HH Sayyid As'ad bin Tarik Al Said, aabar Investments PJS which is 95% owned by the International Petroleum Investment Company of Abu Dhabi, First Energy Oman, wholly owned subsidiary of First Energy Bank B.S.C.(c). Bahrain and Tasameem Real Estate Company LLC, an investment company headquartered in the UAE. The Promoters have a strong track record of global financial services investment including Islamic banking. The Promoters' objective is to establish Alizz Islamic Bank as one of the first Islamic banks in Oman to offer comprehensive business and retail Islamic banking solutions. The Promoters have already contributed OR60m which will represent 60% of the share capital of Alizz Islamic Bank and are inviting investorsto participate in equal commercial terms under the IPO to become shareholders in one of the first Islamic banks in Oman. Alizz Islamic Bank will be constituted on completion of the IPO with a paid up share capital of OR100m.
The offer proceeds along with the Promoters' capital will be used as Tier 1 capital of Alizz Islamic Bank and will fund pre-commercial launch operating costs and initial operations, until such time as Alizz Islamic Bank's cash flows are sufficient to meet these expenses.
The offer price for each share has been fixed at Bzs 102, which comprises the nominal value of Bzs 100 per share and a Bzs 2 per share contribution towards the issue expenses of the IPO.
The IPO has been fully underwritten, at the offer price of Bzs 102 per share, by seven banks and investment companies in Oman comprising Bank Muscat, Ahli Bank, Bank Dhofar, Bank Sohar, The Financial Corporation Company, United Securities and Gulf Baader Capital Markets.
The subscription will be open for both eligible Omani and Non Omani investors from 22 September 2012 until 21 October 2012.
Up to 60% of the shares on offer in the IPO are reserved for small investors who apply for 100,000 shares or less and the balance 40%is reserved for large investors who apply for more than 100,000 shares.
The Islamic banking market in Oman is expected to experience rapid growth, reflecting the unaddressed demand for Islamic banking products and services in Oman. Alizz Islamic Bank aims to become the bank of choice for Omanis seeking comprehensive business and retail Islamic banking solutions. The par value IPO will enable investors participate in Alizz Islamic Bank alongside strong and experienced Promoters on an equal footing and benefit from the growth opportunity in the Islamic banking sector in Oman.
Thanking the CMA and the Central Bank of Oman ("CBO") for their support, Mr. Jamal Darwiche, Chief Operating Officer designate, Alizz Islamic Bank said, "Islamic banking in Oman has the potential to draw unbanked sections of the population into the banking market. Against the GCC average of 114%, Oman's banking penetration was at 70% in 2010, suggesting ample room for growth in the Omani banking sector including Islamic banking. By 2015, Islamic banking assets in Oman are expected to exceed OR2bn representing 10% of total banking assets. With strong and experienced promoters, Alizz Islamic Bank is well positioned to become the market leader by leveraging its early mover advantage."
BankMuscat Investment Banking Division is the financial adviser, issue manager and one of the six subscription banks for the IPO. The other subscription banks are Ahli Bank, Bank Dhofar, Bank Sohar, National Bank of Oman and Oman Arab Bank.
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