Islamic bank will launch an initial public offering for 40 percent of its shares this month
Al Izz Islamic Bank, the second sharia-compliant lender being formed in Oman, will launch an initial public share offer (IPO) for 40 percent of the bank later this month, Oman's regulator said in a statement on Monday.
Al Izz is the second Islamic bank to seek a stock market listing in Oman since the sultanate reversed its position last year as the only country in the Gulf Arab region not to permit sharia-compliant banking.
The bank, which counts Abu Dhabi state-fund Aabar Investments as a founding shareholder, aims to raise OR40m ($104m) through the offer which will open on Sept. 22 and run for one month, the Omani Capital Markets Authority said.
In June Bank Nizwa raised 60 million rials in an IPO that was 11 times oversubscribed. The shares have risen 3 percent since then.
Shares in Al Izz's offering will be priced at 0.1 rials each and are open to both local and foreign investors, although the latter can only be allocated up to 70 percent of the offering.
The offer will be managed by Bank Muscat with the shares due to be allotted on a 60/40 split between retail and institutional investors, although that ratio could change according to demand.
A single institutional investor can subscribe to a maximum of 10 percent of the overall offer, the statement added.