Bahrain’s Al Baraka Banking Group has recently announced that it will open the initial public offering of its Syrian affiliate in October of this year. Chief executive Adnan Ahmed Yousif said his bank expects full-year profits to be similar to 2008.
Al Baraka, Bahrain’s largest Islamic bank by market value, said its profits in the second quarter fell 16.6 percent from the same period last year to $49 million due to the global financial crisis. In 2008 the bank posted a $113.7 million profit.
According to Mamoun Darkazally, general Manager of Al Baraka’s Syrian affiliate, the Syrian IPO will open on October 4 and run for a month. According to Al Baraka's chairman Shaikh Saleh Kamel, plans for the $10 billion Islamic bank are in the final stages. “The private placement (will be closed) either at the end of the year or the first quarter of 2010,” he said.
According to Kamel, the bank has raised nearly $1.5 billion from different financial institutions and individuals. Bank Bemo Saud Fransi is managing the sale while Emirates Islamic Bank has a 10 percent stake in Al Baraka’s Syrian unit. “(For the IPO) I think that we will be starting with $3.5 billion, part of it is private placement and the other part is IPO. It depends how much we achieve in the private placement to enable us to go to the IPO.”