alizz islamic bank to launch IPO on 22 September

alizz islamic bank SAOG, which is under formation,  will launch its initial public offering of 400,000,000 shares on Saturday 22 September. This follows the administrative decision of the Capital Market Authority of Oman dated 8 September approving the prospectus for the IPO.

alizz islamic bank is promoted by Huriah Company LLC owned by Sayyid As'ad bin Tarik Al Said, aabar Investments PJS which is 95% owned by the International Petroleum Investment Company of Abu Dhabi, First Energy Oman, wholly owned subsidiary of First Energy Bank B.S.C.(c). Bahrain and Tasameem Real Estate Company LLC, an investment company headquartered in the UAE.

The promoters have already contributed 60 million Oman rials which will represent 60 per cent of the share capital of alizz islamic bank and are inviting investors to participate in equal commercial terms under the IPO to become shareholders in one of the first Islamic banks in Oman.  alizz islamic bank will be constituted on completion of the IPO with a paid up share capital of RO100 million.

The offer proceeds along with the promoters’ capital will be used as Tier 1 capital of alizz islamic bank and will fund pre-commercial launch operating costs and initial operations, until such time as alizz islamic bank’s cash flows are sufficient to meet these expenses.

The offer price for each share has been fixed at Baizas 102, which comprises the nominal value of Baizas 100 per share and a Bzs2 per share contribution towards the issue expenses of the IPO.

The IPO has been fully underwritten, at the offer price of Bzs102 per share, by seven banks and investment companies in Oman comprising Bank Muscat, Ahli Bank, Bank Dhofar, Bank Sohar, The Financial Corporation Company, United Securities and Gulf Baader Capital Markets.

The subscription will be open for both eligible Omani and non-Omani investors from 22 September until 21 October.

Up to 60% of the shares on offer in the IPO are reserved for small investors who apply for 100,000 shares or less and the balance 40 per cent is reserved for large investors who apply for more than 100,000 shares.

Jamal Darwiche, Chief Operating Officer 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 in the Omani banking sector including Islamic banking. By 2015, Islamic banking assets in Oman are expected to exceed OMR 2 billion representing 10 per cent of total banking assets.”

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.
 

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