Al-Salam hits the stage

03 March 2006
The initial public offering (IPO) of shares in sharia-compliant Al-Salam Bank Bahrain closed on 19 February more than 63 times oversubscribed. The IPO increased the bank's paid-up capital by BD 42 million ($111.4 million), making it the largest IPO in Bahrain in terms of capital raised in the last 10 years and also the largest in terms of subscription. Shares are expected to list on the Bahrain Stock Exchange at the end of April and in the UAE by the end of 2006.

SICO Investment Bank was lead manager, Leader Capital was co-lead manager with Deloitte & Touche, which was also financial adviser, Norton Rose was the legal adviser and KPMG Fakhro was the registrar on the IPO, in which 42 million shares, or 35 per cent of the company, was offered.

The bank's founders, which include Dubai-based Emaar Properties, Amlak Finance, Dubai Investment Group, Dubai Holding, Global Investment House, Lebanese Canadian Bank and Al-Salam Bank Sudan, are understood to be planning to establish more banks across the Middle East and North Africa.

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