Emirates and Sudan Bank announces launch of $28.5 million IPO

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Emirates and Sudan Bank (ESB), one of the biggest of the new Islamic financial institutions to open in Sudan, has announced its launch of a $28.5 million Initial Public Offering (IPO).

The offer represents 25 per cent of the bank’s paid-up capital and will be open to investors of all nationalities who will be able to subscribe through specified centres in UAE and Sudan for one month starting from May 15, 2005. ESB’s 28.5 million shares will be offered at a face value of US$1 each.

Following the IPO, ESB will become the largest capitalised bank in Sudan with a paid-up capital of US$113.5 million and an authorised capital of $200 million.

Investors in Sudan can subscribe to the IPO through El Rawad Financial Services. Investors in the UAE may apply for shares through Dubai Islamic Bank’s (DIB) main branch in Al Shola Building, Al Maktoum Street, DIB’s Sharjah branch at Al Jawazat Street, opposite to King Faisal Mosque, Abu Dhabi Islamic Bank branch at Shaikh Khalifa Street, Abu Dhabi, and Abu Dhabi Islamic Bank branch in Al Sinayia, Al Ain. The banks are acting as collection agents as per the requirements of the Khartoum Stock Exchange.

Dr. Mohamed Khalfan Bin Khirbash, the UAE Minister of State for Finance and Industry and Chairman of the founders’ committee of Emirates and Sudan Bank, said: “The IPO follows completion of the bank’s private placement which closed at US$85 million following an enthusiastic response from investors in Sudan and UAE. Large institutions and Islamic banks from both countries have taken part in the private placement including Dubai Islamic Bank, Sharjah Islamic Bank, Abu Dhabi Islamic Bank (DIB), and Islamic Development Bank.”

He added: “The strong response recorded in private placement is a clear indication of the investors’ confidence in the prospects for the economy of Sudan. This bank, which will offer the highest standards, global best practices and top quality services, will contribute positively to the development of the banking sector in Sudan.”

There has been a surge of investment interest in oil and natural resources rich Sudan, which appears poised for an economic upturn following the signing of a peace treaty to end its civil war. Sudan’s substantial oil and gas reserves are also attracting attention of investors, businesses and financiers from around the world.