24 April 2012
Muscat: The initial public offer (IPO) of Oman's first Islamic bank 'Bank Nizwa', opened yesterday and market analysts expect a good response from both retail and institutional investors, and many believe that the IPO will be oversubscribed.
Bank Nizwa will raise an amount of RO60 million by offering 600 million shares. The shares are being offered at a price of RO0.102 (one hundred and two baizas) per share; comprising a nominal value of RO0.100 per share and issue expenses of two baizas per share.
Ahmed Saif Al Rawahi, Chairman of the Bank Nizwa Founding Committee said, "Our market feasibility study showed that there is a need for an Islamic bank in Oman and up until now the response that Bank Nizwa has received is very positive.
We believe that our IPO will also receive a good response and we hope that many thousands of Omani investors, large and small, will take this opportunity to share in the potential for success of Islamic banking within Oman."
60% for retail investors
Under the IPO, 60 per cent of the share offer is reserved for retail investors who apply for 100,000 shares or less and the remaining 40 per cent is reserved for institutional investors or high net worth individuals who apply for more than 100,000 shares.
The IPO size of RO 60 million constitutes 40 per cent of the bank's paid-up capital of RO150 million whilst the remaining RO90 million has been brought in by Sheikh Saud Bin Ali Al Khalili and a group of 92 additional founding investors, comprising Omani individuals, companies and pension funds.
The founders of the Bank appointed a Founding Committee to represent them and help manage the establishment of the Bank as a Shari'a compliant commercial bank, licensed by the Central Bank of Oman (CBO).
The Founding Committee has appointed Dr. Jamil El Jaroudi as the CEO and recruited experienced people into other key positions to help lead and build the launch of the Bank.
"The objective of the offer is to establish the Bank as an SAOG after completing due process. The founders of the Bank are also seeking the broad participation of the general public and investment community in this pioneering Islamic financial institution through the offer," added Al Rawahi.
The proceeds of the initial public offer will also be used to settle the costs associated with setting up the Bank, 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.
Muscat: The initial public offer (IPO) of Oman's first Islamic bank 'Bank Nizwa', opened yesterday and market analysts expect a good response from both retail and institutional investors, and many believe that the IPO will be oversubscribed.
Bank Nizwa will raise an amount of RO60 million by offering 600 million shares. The shares are being offered at a price of RO0.102 (one hundred and two baizas) per share; comprising a nominal value of RO0.100 per share and issue expenses of two baizas per share.
Ahmed Saif Al Rawahi, Chairman of the Bank Nizwa Founding Committee said, "Our market feasibility study showed that there is a need for an Islamic bank in Oman and up until now the response that Bank Nizwa has received is very positive.
We believe that our IPO will also receive a good response and we hope that many thousands of Omani investors, large and small, will take this opportunity to share in the potential for success of Islamic banking within Oman."
60% for retail investors
Under the IPO, 60 per cent of the share offer is reserved for retail investors who apply for 100,000 shares or less and the remaining 40 per cent is reserved for institutional investors or high net worth individuals who apply for more than 100,000 shares.
The IPO size of RO 60 million constitutes 40 per cent of the bank's paid-up capital of RO150 million whilst the remaining RO90 million has been brought in by Sheikh Saud Bin Ali Al Khalili and a group of 92 additional founding investors, comprising Omani individuals, companies and pension funds.
The founders of the Bank appointed a Founding Committee to represent them and help manage the establishment of the Bank as a Shari'a compliant commercial bank, licensed by the Central Bank of Oman (CBO).
The Founding Committee has appointed Dr. Jamil El Jaroudi as the CEO and recruited experienced people into other key positions to help lead and build the launch of the Bank.
"The objective of the offer is to establish the Bank as an SAOG after completing due process. The founders of the Bank are also seeking the broad participation of the general public and investment community in this pioneering Islamic financial institution through the offer," added Al Rawahi.
The proceeds of the initial public offer will also be used to settle the costs associated with setting up the Bank, 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.
© Times of Oman 2012
