Alizz islamic bank launched its RO40mn IPO to offer 400 million shares or 40 per cent of the total share capital at 102bz per share. The subscription period will close on October 21.
The Initial Public Offering (IPO) of alizz islamic bank (under formation) is now open for subscription. The IPO for 40 per cent of the share capital comprises 400 million shares and is priced at baisas 102 per share. On completion of the IPO, alizz islamic bank will have a paid up share capital of 100 million rials. The offer will close on October 21.
Alizz bank is promoted by Huriah Company, an investment vehicle owned by HH Sayyid As’ad bin Tarik al Said, UAE-based Aabar Investments, Tasameem Real Estate Company and First Energy Oman, which is a wholly-owned subsidiary of Bahrain-based First Energy Bank. The promoters have already contributed RO61.2mn, representing 60 per cent of the bank’s share capital at 102bz per share.
The IPO is lead managed by bank muscat and has been fully underwritten by leading Omani financial institutions.
Announcing the launch of the IPO on behalf of Huriah Management, Ahmed Alkhonji said, “We are very proud to be supporting the establishment of Islamic banking in Oman. The large unmet demand for Islamic banking means that alizz islamic bank is uniquely placed to become a market leader for banking products. We are delighted to have Aabar, First Energy Bank and Tasameem as our partners and the bank will benefit immensely from their considerable international experience.”
Coinciding with the IPO launch, alizz islamic bank also unveiled its vision to be Oman’s leading Islamic bank that facilitates commerce and development through innovative financial solutions consistent with the principles of Islamic banking.
“From a social perspective, the importance of the IPO cannot be underestimated,” said Mohamed Al Fahim, board director of Aabar Investments. “The products and services of alizz islamic bank will help support the banking requirements of people in Oman, within an appropriate cultural context for the first time. This is key to continuing the remarkable growth and diversification of Oman’s economy.”
Chief operating officer Jamal Darwiche said that the bank aims to capture a 20 per cent market share in Oman›s Islamic banking sector over the next five years. “We expect to achieve a 3.5 per cent market share in Oman’s banking sector and a nearly 20 per cent share of the Islamic market by 2017. As per our conservative projections, the bank is expected to make its first profit in the second year of operations. We aim to become Oman’s leading Islamic bank that facilitates commerce and development through innovative financial products consistent with the principles of Islamic banking.”
Growth in Islamic banking has outstripped conventional banking growth across GCC markets, and is now valued at around $300bn by asset value. The promoters are confident that Oman will experience similar growth in its new Islamic banking market and that alizz islamic bank is uniquely placed to become a market leader.