Paid Up Capital to be increased from US $10 million to US $50 million. Authorised capital set at US $100 million
Manama, Bahrain: Addax, the Middle East investment bank based in Bahrain, has announced a 400 per cent capital increase, raising the paid up capital from US $10 million to US $50 million.
Addax was incorporated in October 2003 and is regulated by the Bahrain Monetary Agency (BMA). 2005 results showed a net income growth in excess of 220% year on year, from US $1million to US $3.2 million.
General Manager Yousef A Al-Essa said: "We started with a relatively low capitalization. The bank has been profitable every quarter since inception and we have been growing at an extremely fast pace."
Al-Essa continued, "Within the last three months of 2005 alone, Addax signed three high-profile deals in the region, with a combined value of over US $1 billion. Based on this success and growth, we now feel that the time is right to increase our capital base and bring in a select group of new shareholders."
In September, the bank structured and placed a US $150 million deal to launch 20 Express by Holiday Inn hotels across five countries in the Gulf Co-operation Council (GCC).
In October, Addax took a 10 per cent stake in JD Capital, the investment company established to develop opportunities in Jordan's booming economy. Addax is the third largest investor in the fund, which is capitalised at JD 210 million (US $300 million) and includes shareholders such as Dubai International Capital (DIC) and Arab Bank.
In November, the bank signed an agreement with the Singapore-based Ascott Group to set up and manage a US $1billion investment fund to finance the acquisition of properties in the Middle East, to be managed as serviced residences under the Ascott and Somerset brands.
Earlier this month the bank announced the completion of a US$20 million deal merging two GCC companies, Omanline and Mena Business Services of Dubai.
Al-Essa further remarked, "We have an extremely healthy pipeline over the coming months. Within the next 6 months alone we will launch 3 separate US $100 million companies."
Addax is fast gaining a reputation for innovative deals within the Middle East and Asia.
Al Essa highlighted that out of the net profit of US $3.2 million for 2005, only US $134,000 was unrealised and that the balance of "changes in the fair value of investments carried at fair value through income statement" represented realised gains that had been received in cash, prior to the year's end.
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Addax Investment Bank has an authorised capital of US$100 million and is regulated by the Bahrain Monetary Agency (BMA). The Bank was formed in 2003 and has been involved in a number of high profile deals throughout the region since then.
Addax Investment Bank's landmark deals include: a US $150 million arrangement to launch 20 Holiday Inn Express hotels across the GCC; and participation with Dubai International Capital and other lead investors in creating JD Capital, a US $300 million (approximately) company targeting investment opportunities in Jordan. Additionally, Addax Investment Bank is launching a US $1 billion investment fund in collaboration with The Ascott Group of Singapore, to acquire and manage a chain of serviced apartment buildings throughout the Middle East.
Addax is fast gaining a reputation for launching innovative and unique deals in the region.
© Press Release 2006
