Omani Bank Nizwa's 40% IPO Receives Huge Response -Report

Wednesday, May 23, 2012

BEIRUT (Zawya Dow Jones)--The initial public offering of 600 million shares of Bank Nizwa--Oman's first Islamic lender--has received a huge response from investors, Muscat-based Al Watan daily reports Wednesday citing Lo'ai Bataineh, head of the Investment Management Group at Oman Arab Bank--the lead manager and underwriter.

The bank had offered each share at 0.102 Omani rial ($0.27) in the IPO that started April 23, the paper reports.

The IPO, valued at OMR60 million, represents 40% of Bank Nizwa's paid-up capital which amounts to OMR150 million; the remainder was contributed by its founders, according to the bank's website.

The lender had said that it will use the IPO proceeds "to settle the costs associated with setting up the bank, including costs relating to the execution of the bank's business plan, such as leasing new branches, hiring staff, purchasing infrastructure, and conducting its general business operations."

Newspaper website: http://www.alwatan.com/dailyhtml/economy.html#3

-By Beirut Bureau, Zawya Dow Jones; +961-1-985 757; BeirutZDJ@zawya.com

(END) Dow Jones Newswires

23-05-12 0812GMT