Ithmaar to IPO, Solidarity spreads

16 December 2005
Ithmaar Bank, the local subsidiary of Swiss-based Dar al-Maal al-Islami Group (DMI), plans to stage an initial public offering (IPO) of 150 million shares on the Bahrain Stock Exchange in early 2006. Its sister company Shamil Bankwill act as the lead manager for the IPO, and financial adviser along with KPMG. Ithmaar, which raised its paid-up capital to $200 million from $150 million after a private placement of shares, plans to relaunch as Bahrain Shareholding Company.

Bahrain-based DMI insurance subsidiary Solidarity has also signed an initial agreement with Malaysia Assurance Alliance Berhadto establish a 25:75 joint venture which will provide general and family sharia-compliant insurance in Malaysia. Both partners have applied for a licence to market takaful products. The company will have a paid-up capital of $25 million, which it is expected to raise before expanding to Indonesia.

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