Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, announced today that it is doubling its issued equity capital base from approximately $400 million to more than $800 million. A meeting of Arcapita shareholders has approved a $400 million increase in Arcapita’s issued share capital comprising a $200 million issuance to existing shareholders and a $200 million issuance to new strategic investors.
Arcapita also announced that in order to provide liquidity for Arcapita shareholders and to establish a market price for Arcapita shares, the Bank plans to establish the Arcapita Share Liquidity Program (ASLP), which will facilitate trading between willing buyers and sellers of Arcapita’s shares.
Commenting on the capital increase, Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said “This strengthening of our capital base consolidates the rapid growth achieved by the Bank in recent years and ensures that Arcapita maintains a strong capital structure to support our future expansion plans.”
Over the last eight years, Arcapita’s net income has grown at a compounded annual growth rate of 37 per cent and its balance sheet has grown to approximately $1.9 billion as at 31 December 2005. Arcapita has completed 52 transactions with a total transaction value of approximately $11 billion during this period.
Arcapita sources its investments from its three offices in North America, Europe, and the Middle East and expanded its international reach into Asia in 2005 by making its first investment in Japan. According to Mr. Abdulmalik, “In order to provide our investors with additional diversified investment opportunities, we recently established a venture capital line of business and we are exploring the options for expanding the geographical reach of our corporate and real estate lines of business. Strengthening our balance sheet supports these developments and will also allow us to increase deal volume and underwrite larger investment transactions.”
“The board agreed with management that, for several important reasons, this was the right time to strengthen the balance sheet in support of Arcapita’s strategic expansion plans”, said Abdulaziz Aljomaih, Vice Chairman of Arcapita. “Arcapita’s net income and balance sheet continues to grow significantly and we foresee considerable further growth opportunities. In line with the Bank’s balance sheet management philosophy, the equity increase will also allow the Bank to maintain conservative financial ratios.”
In recent months, the Bank has announced a number of its largest transactions to date, including Roxar AS, the European technology solutions provider for the oil and gas industry acquired for approximately $200 million; the Tensar Corporation, the US provider of technology driven construction site solutions acquired for $405 million; and Bahrain Bay, the $1.5 billion mixed use real estate development off the north east coast of Manama in Bahrain.
This press release is intended as general information regarding Arcapita's capital increase and shall not be construed as an offering of securities in any region.
About Arcapita
Headquartered in Bahrain with offices in Atlanta and London, Arcapita’s four principal lines of business are corporate investment, real estate investment, asset-based investment and venture capital. To date, the Bank has completed 52 transactions with a total value exceeding $11 billion and has an equity capital base of approximately $400 million. Arcapita’s mission is to provide innovative and distinctive investment opportunities that generate superior risk-adjusted returns and adhere to Islamic principles.
Full details of Arcapita can be found at www.arcapita.com
