Al Salam Bank IPO oversubscribed 63 times - BD 2.7 billion collected from UAE and Bahraini investors
Al Salam Bank - Bahrain BSC announced the successful closure of its Initial Public Offering (IPO), with the issue being oversubscribed over 63 times. Public subscription opened for residents of UAE and Bahrain on 5th February 2006 and within two weeks collected an amount in excess of 2.7 billion Bahraini Dinars.
Presenting the results of the IPO, Mr. Hussein Mohammed Al Meeza, Vice Chairman of the Founders Committee of Al Salam Bank, said: “We are happy with the IPO’s unprecedented success and the investor confidence in the bank. I would like to thank the Government of Bahrain for their support. I would also like to thank the Bahrain Monetary Agency and the Ministry of Finance for the facilities provided during the bank’s establishment phase.”
Mr. Al Meeza also thanked the bank’s partners for the organizational success of the IPO. SICO was Lead Manager, Leader Capital was Co-Lead Manager, Deloitte & Touche was Financial Advisor, Norton Rose was Legal Advisor and KPMG Fakhro was the IPO Registrar. Receiving banks in Bahrain were Ahli United Bank, Bahrain Islamic Bank and Bank of Bahrain and Kuwait while in the UAE they were Union National Bank, Abu Dhabi Islamic Bank and Dubai Bank.
“Al Salam Bank investors have made a safe and insightful investment decision that has huge potential for growth. The IPO received support from individuals of all nationalities in Bahrain and the UAE along with institutional investors. The smooth and organised conduct of the IPO aided subscriber confidence.
The Al Salam Bank IPO was the largest in the Kingdom’s history. It offered 35 per cent of its paid up capital in the form of 42 million Ordinary Shares to individual and institutional investors. Subscriptions for a minimum of 1,000 shares were invited at BD1.050 or AED10.29 per share, including service charges. 65 per cent of the bank estimated at BD 78 million (AED 760.62 million) is held by its founders. These are Emaar Properties, Amlak Finance, Dubai Investment Group, Dubai Holding, Global Investment House, Lebanese Canadian Bank, Al Salam Bank in Sudan and Aman Insurance and Re-insurance Company. In addition, a large number of establishments, companies and businessmen from Bahrain, UAE and the KSA are also founder shareholders.
Mr. Al Meeza concluded: “Through strategic partnerships with the region’s leading corporations, the bank will contribute significantly to the sustainable development of the economy. Being equipped with the latest technology and processes, the bank will be at the forefront of offering Islamic finance products and customer centric services. We look forward to contribute in building a new era of financial services in the region.”
Al Salam Bank is an Islamic commercial bank licensed by the Bahrain Monetary Authority and registered by the Ministry of Industry and Commerce of the Government of Bahrain. The bank will have a paid-up capital of BD120 million. Its mission is to be a leader among Islamic banks in Bahrain by providing a comprehensive range of Islamic banking products and services. These would include demand and investment accounts, financial products, property and lease financing, bank guarantees and Islamic Sukuks amongst others.