Alizz islamic bank, which launched its initial public offering (IPO) on Saturday, is expected to post its first profit in the second year of operations. The bank's shares will be listed on the Muscat Securities Market (MSM) on December 3.
The bank launched its RO40mn IPO to offer 400mn shares or 40 per cent of the total share capital at 102bz per share. The subscription period will close on October 21.
Addressing a press conference on Sunday, 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.
He said, "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."
Darwiche said that all steps for the commercial launch of the bank have been taken and it will be ready for launch once the Islamic banking regulations are announced by the central bank. In the first year, the bank intends to launch a flagship branch in Muscat, housing centralised functions.
"We will start operations with a flagship branch in Muscat. We are making plans and conducting feasibility studies for expansion to cover as many regions as possible in the coming years," added Darwiche.
Alizz bank is promoted by Huriah Company, an investment vehicle owned by H H 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 bank's share capital at 102bz per share. On completion of the IPO, the bank will have a paid-up share capital of RO100mn.
Ahmed al Khonji, speaking on behalf of Huriah Company, said, "The large unmet demand for Islamic banking means that alizz is uniquely placed to become a market leader for banking products.
"We are delighted to have Aabar, First Energy and Tasameem as our partners and the bank will benefit immensely from their considerable international experience."
© Muscat Daily 2012
