Oman's Al Izz Islamic Bank, the sultanate's second Islamic bank, attracted bids worth RO46 million ($119.5 million) for its initial public share offer, 1.15 times the sum which it was raising.

The bank, which counts Abu Dhabi state-fund Aabar Investments as a founding shareholder, will be listed on the Muscat Securities Market on December 3, the source said.

Al Izz looked to raise RO40 million ($104 million) by selling 40 percent of its capital through a month-long initial public offering, which ended on October 21 and was managed by Bank Muscat.

The Omani Capital Markets Authority is expected to officially announce the IPO result next week on its website.

Oman reversed its prohibition on Islamic finance last year and now intends to develop the industry, seeing economic and political benefits. Al Izz is not yet operational and has only a representative office; it plans to open a branch after the listing of its shares.

Oman's first Islamic bank, Bank Nizwa, raised RO60 million rials by selling 40 percent of its capital in May this year. Its IPO was 11 times oversubscribed but the bank's shares are currently trading only 4 percent above their RO0.1 offer price. – Reuters