Par value offering from strong and experienced Promoters
alizz islamic bank to benefit from superior growth profile of Islamic banking in Oman
Middle East, 16 September 2012 - alizz islamic bank SAOG (under formation) ("alizz islamic bank") will launch its initial public offering ("IPO") of 400,000,000 shares on Saturday 22 September 2012. This follows the administrative decision of the Capital Market Authority of Oman ("CMA") dated 8 September 2012 approving the prospectus for the IPO.
alizz islamic bank is promoted by Huriah Company LLC owned by HH Sayyid As'ad bin Tarik Al Said, aabar Investments PJS which is 95% owned by the International Petroleum Investment Company of Abu Dhabi, First Energy Oman, wholly owned subsidiary of First Energy Bank B.S.C.(c). Bahrain and Tasameem Real Estate Company LLC, an investment company headquartered in the UAE. The Promoters have a strong track record of global financial services investment including Islamic banking. The Promoters' objective is to establish alizz islamic bank as one of the first Islamic banks in Oman to offer comprehensive business and retail Islamic banking solutions. The Promoters have already contributed RO 60 million which will represent 60% of the share capital of alizz islamic bank and are inviting investorsto participate in equal commercial terms under the IPO to become shareholders in one of the first Islamic banks in Oman. alizz islamic bank will be constituted on completion of the IPO with a paid up share capital of RO 100 million.
The offer proceeds along with the Promoters' capital will be used as Tier 1 capital of alizz islamic bank and will fund pre-commercial launch operating costs and initial operations, until such time as alizz islamic bank's cash flows are sufficient to meet these expenses.
The offer price for each share has been fixed at Bzs 102, which comprises the nominal value of Bzs 100 per share and a Bzs 2 per share contribution towards the issue expenses of the IPO.
The IPO has been fully underwritten, at the offer price of Bzs 102 per share, by seven banks and investment companies in Oman comprising Bank Muscat, Ahli Bank, Bank Dhofar, Bank Sohar, The Financial Corporation Company, United Securities and Gulf Baader Capital Markets.
The subscription will be open for both eligible Omani and Non Omani investors from 22 September 2012 until 21 October 2012.
Up to 60% of the shares on offer in the IPO are reserved for small investors who apply for 100,000 shares or less and the balance 40%is reserved for large investors who apply for more than 100,000 shares.
The Islamic banking market in Oman is expected to experience rapid growth, reflecting the unaddressed demand for Islamic banking products and services in Oman. alizz islamic bank aims to become the bank of choice for Omanis seeking comprehensive business and retail Islamic banking solutions. The par value IPO will enable investors participate in alizz islamic bank alongside strong and experienced Promoters on an equal footing and benefit from the growth opportunity in the Islamic banking sector in Oman.
Thanking the CMA and the Central Bank of Oman ("CBO") for their support, Mr. Jamal Darwiche, Chief Operating Officer designate, alizz islamic bank said, "Islamic banking in Oman has the potential to draw unbanked sections of the population into the banking market. Against the GCC average of 114%, Oman's banking penetration was at 70% in 2010, suggesting ample room for growth in the Omani banking sector including Islamic banking. By 2015, Islamic banking assets in Oman are expected to exceed OMR 2 billion representing 10% of total banking assets. With strong and experienced promoters, alizz islamic bank is well positioned to become the market leader by leveraging its early mover advantage"
BankMuscat Investment Banking Division is the financial adviser, issue manager and one of the six subscription banks for the IPO. The other subscription banks are Ahli Bank, Bank Dhofar, Bank Sohar, National Bank of Oman and Oman Arab Bank.
About alizz islamic bank
alizz islamic bank is promoted by Huriah Company LLC, aabar Investments PJS, First Energy Oman and Tasameem Real Estate Company LLC for the purpose of offering comprehensive business and retail Islamic banking solutions in accordance with Omani law and the CBO regulations governing Islamic Banking in Oman.
alizz islamic bank is currently under formation and the incorporation and registration of alizz islamic bank will be finalised in accordance with the requirements of Omani law and the relevant Omani authorities following the closing of the IPO.
For further information, please visit www.alizzislamic.com
About Huriah Company LLC
Huriah Company is headquartered in Oman. Huriah is an investment vehicle owned by HH Sayyid As'ad bin Tarik Al Said. Its investments include shares in public companies in Oman, commercial real estate as well as agricultural real estate. The company is also affiliated to investments in oil and gas, telecommunications and other allied development projects.
About aabar Investments PJS
aabar is an investment company based in Abu Dhabi, UAE. aabar is 95% owned by the International Petroleum Investment Company of Abu Dhabi.
aabar has a diversified global investment portfolio. It is an experienced financial services investor, with interests in listed, full service commercial banks in Europe and South East Asia. It holds significant interests in Unicredit SpA and in RHB Capital Berhad. aabar is also the 100% owner of Falcon Private Bank Ltd, a leading Swiss private bank. aabar also has investments in the real estate, automotive, aviation, aerospace, commodities and food security sectors.
For further information on aabar, visit www.aabar.com
About First Energy Oman
First Energy Oman is a Cayman Island registered, wholly owned subsidiary of First Energy Bank B.S.C.(c). First Energy Bank is an Islamic investment bank licensed by the Central Bank of Bahrain and headquartered in Manama, Kingdom of Bahrain. It was established in 2008 with a paid up capital of USD 1 billion, and focuses on the MENA regions. First Energy Bank operates in accordance with Islamic principles as a financial partner in project development, joint ventures, mergers and acquisitions and the purchase of assets and asset portfolios. Its shareholder base includes respected organisations and individuals from the GCC countries; UAE, Kingdom of Bahrain and the Kingdom of Saudi Arabia.
For further information on First Energy Bank, visit www.1stenergybank.com
About Tasameem Real Estate Company LLC
Tasameem Real Estate Company is an investment company headquartered in the UAE. Tasameem has investments in several industries ranging from general investments, real estate, construction, financial institutions, branded restaurants and other sectors. Tasameem investments are spread across the UAE, GCC, Europe, Asia and North America.
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© Press Release 2012
