Alizz islamic bank will launch its IPO of 400,000,000 shares on September 22 2012, it announced in a statement. The move follows IPO prospectus approval received from Oman’s Capital Market Authority.
The offer price for each share has been fixed at 102 baiza, which includes the nominal value of 100 baiza per share and a 2 baiza per share contribution towards the IPO issue expenses.
The offering has been fully underwritten by Bank Muscat, Ahli Bank, Bank Dhofar, Bank Sohar, The Financial Corporation Company, United Securities and Gulf Baader Capital Markets.
Alizz islamic bank will be constituted on completion of the IPO with a paid up share capital of OMR100 million (around $260 million), the statement said.
The bank’s promoters who include Huriah Company, Aabar Investments, First Energy Oman and Tasameem Real Estate Company have already invested 60 per cent of the bank’s share capital, amounting to OMR60 million.
“The promoters have a strong track record of global financial services investment including Islamic banking and their objective is to establish alizz islamic bank as one of the first Islamic banks in Oman to offer comprehensive business and retail Islamic banking solutions,” the statement said.
The offer proceeds and the promoters’ capital will be used as Tier 1 capital to fund pre-commercial launch operating costs and initial operations, it added.
Jamal Darwiche, COO designate, alizz islamic bank said: “Islamic banking in Oman has the potential to draw unbanked sections of the population into the banking market. Against the GCC average of 114 per cent, Oman’s banking penetration was at 70 per cent in 2010, suggesting ample room for growth.
“By 2015, Islamic banking assets in Oman are expected to exceed OMR 2 billion representing 10 per cent of total banking assets. With strong and experienced promoters, alizz islamic bank is well positioned to become the market leader by leveraging its early mover advantage.”
The subscription for the IPO will be open for eligible Omani and non Omani investors from September 22 2012 to October 21 2012.
While 60 per cent of the shares on offer are reserved for small investors who apply for 100,000 shares or less, the remaining 40 per cent is reserved for large investors who apply for more than 100,000 shares.
BankMuscat Investment Banking Division is the financial adviser, issue manager and one of the six subscription banks for the IPO. The other subscription banks are Ahli Bank, Bank Dhofar, Bank Sohar, National Bank of Oman and Oman Arab Bank.