GFH Financial Group (GFH) has announced plans to list its Khaleeji Commercial Bank (KHCB) at the Dubai Financial Market (DFM) to unlock its market potential.

The listing is subject to obtaining regulatory approvals in Bahrain, said GFH Group CEO Hisham Alrayes said during a presentation at the DFM on “GFH Future Prospects”, which was attended by the shareholders, investors and brokers.  

"We are hoping to list Khaleeji Commercial Bank on DFM (Dubai Financial Market), which will help increase the value of the bank, and to offer fee-based financial services, helping to diversify our revenue base," Alrayes said.

Alrayes did not say when the Dubai listing might take place or give further details of the share offer. GFH owns a 47 percent stake in Khaleeji worth $78.6 million based on its stock price in Bahrain, according to Thomson Reuters data.

In addition, Alrayes briefed the audience about GFH’s financial results and comparative performance as well as GFH’s intention to undertake Islamic Financial institution license in Abu Dhabi Global Market (ADGM) in partnership with Abu Dhabi Financial Group (ADFG).

GFH also confirmed that the process of identifying potential acquisition targets within the regional financial industry is ongoing, and this formed part of the group strategy.

An Islamic financial firm, Bahrain-based GFH is itself listed on three Gulf bourses: Bahrain, Dubai and Kuwait. It is often the most heavily traded stock in Dubai.

Crippled by the global financial crisis in 2008, GFH went through several debt restructurings. Alrayes said the company was now wanted to be regarded by investors as a financial holding company rather than an investment bank.

The company aims to generate around 15 percent of its income over the next two years from real estate investments, which will be managed by a new Dubai-based operation called GFH Real Estate.

It is currently involved in property projects in Bahrain, Dubai, India and Tunisia. Its private equity operation is looking at possible deals in the US, Britain and Saudi Arabia, Alrayes said without giving details.

Last October GFH agreed to acquire a US industrial real estate portfolio in a deal worth $125 million, and in May last year it said it would buy a mall in the Saudi Arabian city of Jeddah for $48 million.  - TradeArabia News Service and Reuters