Al Izz Islamic Bank, the second sharia-compliant lender being formed in Oman, has launched its initial public offering (IPO) offering a total of 400 million shares at a fixed offer price of 102 bizas.

The IPO is being lead managed by Bank Muscat and has been fully underwritten by leading Omani financial institutions.
The offer closes on October 21.

The bank is being promoted by Huriah Company owned by Sayyid As'ad bin Tarik Al Said, Abu Dhabi-based Aabar Investments, First Energy Oman, a wholly-owned subsidiary of Bahrain-based First Energy Bank and Tasameem Real Estate Company, an investment company headquartered in the UAE.

Announcing the IPO launch, Ahmed Alkhonji of  Huriah Management said, "We are very proud to be supporting the establishment of Islamic banking in Oman. The large unmet demand for Islamic banking means that alizz is uniquely placed to become a market leader for banking products."

"We are delighted to have aabar, First Energy Bank and Tasameem as our partners and the bank will benefit immensely from their considerable international experience," he stated.

The promoters have already contributed RO60 million ($155.4 million) representing 60 per cent of the share capital. The IPO for 40 per cent of the share capital comprises 400 million shares also priced at Bzs 102 per share, said Alkhonji.

On completion of the IPO, alizz islamic bank will have a paid up share capital of RO100 million, he added.

Coinciding with the IPO launch, alizz  has unveiled its vision “to be Oman’s leading Islamic Bank that facilitates commerce and development through innovative financial solutions consistent with the principles of Islamic banking”.

Alizz's promoters said they are committed to delivering comprehensive commercial and retail banking solutions to the people of Oman through the Islamic bank.

Highlighting Aabar’s strategic role in the bank's development, Mohamed Al Fahim, the board director said, “This is a strategic investment for Aabar that builds on our established investment success in global financial services. We are pleased to support the availability of Islamic banking solutions to the people of Oman and are confident in the bank’s strong investment case."

First Energy Bank, which has a successful track record in Islamic investment banking in the region, said it was excited to be part of Alizz islamic bank.

"As one of the leading Islamic banks in the region, we have well developed Islamic banking setup expertise. We will continue working closely with the management team and assist where possible," remarked Mohamed Ghanem, the acting CEO.

"Significant progress has already been made on the bank’s operations and we are confident of a successful launch," Ghanem added.

The bank’s establishment has benefited from a focused promoter group and the chief operating officer designate Jamal Darwiche.

Besides Ghanem, the promoters’ committee includes Yeshwant Desai, a former CEO of Bank Muscat, and Mohamed Badawy Al-Husseiny, the CEO of Aabar Investments.-TradeArabia News Service