Albaraka Banking Group, one of the regional leaders in Islamic retail banking, continues its preparations to launch its IPO, scheduled to be one of the largest transactions in the GCC region. It is the first time a group established more than a quarter of a century ago offers part of its shares in an IPO in the region.
The IPO comprises two stages, the first of which has been completed. A successful US$ 400 million private placement exercise in which a number of strategic investors were invited to subscribe to the IPO, including major investors from the region as well as institutional and government investors was completed in April.
The invitation was met with an overwhelming response, considering the attractive investment opportunity offered coupled with the investors’ confidence in the business of the group, its activities and the expected return on investment. Shaikh Kamel stressed that all investors in the private placement stage were major investors who have prominent positions in the financial and banking industries and in the financial markets in the countries of this region.
Shaikh Saleh Abdulla Kamel, Chairman of the ABG board, said: “The group, in coordination with the IPO financial advisor, Gulf International Bank, has completed all preparatory work for the IPO, in which shares will be offered to investors in the GCC.
“The IPO subscription process will be carried out in a smooth, fast and efficient manner reflecting high expertise, efficiency and market trust in all the parties involved in the structuring of this IPO.”
Mr. Adnan Ahmed Yousif, ABG Chief Executive Officer, said that according to the timetable agreed with the Financial Advisor, the Group intends, once the formalities of listing the Group’s shares in Bahrain Stock Exchange and Dubai International Financial Market are completed, to offer the shares allocated for the IPO towards end of this month.
Mr. Adnan Ahmed Yousif expressed his confidence that this step will represent a major landmark in the Islamic banking industry, considering the rapid developments in the industry .
The IPO is a realization of as part of strategic plans laid down more than five years ago, with a view to expanding into new markets and pursuing the major financing and investment opportunities that are now available to it.
Albaraka Banking Group is a leading international Islamic bank, offering retail, corporate and investment banking and treasury services strictly in accordance with the principles of Shari’a. The authorized capital of ABG is US$ 1.5 billion.
The Group has a wide geographical presence in the form of subsidiary banking units in ten countries, which in turn have more than 200 branches. These banking units are Banque Al Baraka D’Algerie; Al Amin Bank, Bahrain; Al Baraka Islamic Bank, Bahrain; The Egyptian Saudi Finance Bank, Egypt; Jordan Islamic Bank, Jordan; Al Baraka Bank Lebanon, Lebanon; Al Baraka Bank Ltd., South Africa; Al Baraka Bank Sudan, Sudan; Bank Ettamweel Al Saudi Al Tunisi, Tunisia; Al Baraka Turk Participation Bank, Turkey and Al Baraka Islamic Bank, Pakistan.