Further proof of the success of Islamic banking: Alizz Bank to launch IPO
This follows the administrative decision of the Capital Market Authority of Oman (“CMA”) dated 8 September 2012 approving the prospectus for the IPO.
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 owned by HH Sayyid As'ad bin Tarik Al Said, aabar Investments which is 95 per cent owned by the International Petroleum Investment Company of Abu Dhabi, First Energy Oman, wholly owned subsidiary of First Energy Bank.
Bahrain and Tasameem Real Estate Company, 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 OMR 60 million which will represent 60 per cent of the share capital of alizz islamic bank and are inviting investors to 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 OMR 100 million.
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 per cent 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 per cent 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 bankaims 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, 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 per cent, Oman’s banking penetration was at 70 per cent 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 OMR 2 billion representing 10 per cent 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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