Trading of Khaleeji Commercial Bank on Bahrain Stock Exchange on June 12

Published June 12th, 2008 - 08:10 GMT

An agreement was signed on Wednesday 11th June 2008 between Bahrain Stock Exchange (BSE) and Khaleeji Commercial Bank (KHCB) to list the Bank’s shares on the Bahrain Stock Exchange. The agreement was signed by Fouad Rashid, Director of the Exchange at the BSE and Dr. Fuad Abdulla Al-Omar, Chairman of KHCB in the presence of Ebrahim H Ebrahim, CEO of KHCB, Rashad Janahi, Director, KHCB and Ramy J. Echo, Head of Corporate Finance at Securities & Investment Company, the Listing Advisor. The shares of the Bank will commence trading on 12th June and will trade under the symbol “KHCB”. 

 

Commenting on this occasion, Dr. Fuad Abdulla Al-Omar, Chairman of Khaleeji Commercial said: “Transitioning from a closed to a public joint stock company is a turning point in the history of the Bank. The listing will enable the Bank to diversify its shareholder base while providing liquidity to its exiting shareholders.”
 
Mr. Ebrahim H. Ebrahim, CEO of Khaleeji Commercial Bank said: ”Listing of the shares on the BSE is a natural step in the evolution of the Bank as a leading player in the local and regional banking sector.  We also believe that the listing will enhance its position among the investors in the regional capital markets.  We will continue to build a sustainable business and enhance shareholder returns in the future.”

 

Mr. Fouad Rashid was delighted for the listing of Khaleeji Commercial Bank on the BSE.  He said, “This step will support the BSE by bringing more liquidity into the market and expanding the shareholders’ and clients’ base to go in line with the Exchange’s recent initiatives.  Such listings have contributed to attracting a large number of investors, both Bahrainis and non-Bahrainis which will highlight the investment opportunities at the BSE.”  “Khaleeji Commercial Bank is the first public shareholding company to be provided with the share registrar service,” he added.

 

The BSE's Director also revealed that the shares of Khaleeji Commercial Bank will be traded in the IPOs market for a period of 6 months as of Thursday 12 June 2008 with "KHCB" as its trading symbol, transferring it later to the Investment Sector in the Regular Market. 

 

Following the listing of Khaleeji Commercial Bank on the BSE, the number of Bahraini Shareholding Companies reached 52, of which 7 companies are non-Bahraini with a market capitalization of BD 11.22 billion.

 

KHCB, established in November 2004, operates under a retail banking license (Islamic principles) granted by the CBB, with a paid up capital of BD 100 Million divided into 1,000,000,000 ordinary shares. Originally, KHCB was a fully owned subsidiary of Gulf Finance House with a paid up capital of BD 30 Million. The Bank increased its capital in 2007 when several large and reputable regional institutions including Al Imtiaz Investment Company, Kuwait, Emirates Islamic Bank, Qatar Islamic Bank, Bahrain Islamic Bank, Awqaf & Minors Affairs Foundation, Dubai and MENA Real Estate Company, Kuwait became strategic shareholders.

 

KHCB recently reported strong results for the first quarter ended March 31, 2008.  Net income for the quarter increased by 213% to BD12.6 million compared to BD 4 million for the corresponding period in 2007.   Total assets grew by 187% to BD308.5 million and customer deposits increased by 130% as of March 2008.  On an annualized basis, Return on average assets was 17.4%, and return on average equity was 39.9%. The Bank also distributed a cash dividend of 15% for the year 2007. 

 

Securities and Investment Company B.S.C(C) is the Listing Advisor on the KHCB Primary Listing.  Hatim S. Zu’bi & Partners is the Legal Advisor.


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