JEDDAH, 20 April 2005 — Commerce and Industry Minister Dr. Hashem Yamani has approved the establishment of Bank Albilad as a joint stock company with a capital of SR3 billion.
The bank, based in Riyadh, has been licensed for 99 years to carry out banking and investment activities as per Saudi rules and regulations, the Saudi Press Agency said.
Albilad has 60 million shares each with a nominal value of SR50. The founders have subscribed to 30 million shares worth SR1.5 billion while the remaining shares have been floated for public subscription.
The bank will be managed by a 11-member board appointed by the general assembly, SPA said, adding that the term of the first board will be five years. Exchange of the shares of founders will be allowed only after three financial years.
At a meeting of Albilad, held last Saturday at the Riyadh Intercontinental Hotel, shareholders verified the total subscription of the bank’s capital and issued the bank’s final policies and approved the appointment of the bank’s board of directors for the next five years.
Albilad’s board of directors comprises Musaed Mohammad Al-Snani, Ibrahim Abdullah Al-Subeaei, Nasser Mohammad Al-Subeaei, Khaled Abdul Aziz Al-Mukairin, Khaled Abdul Rahman Al-Rajhi, Dr. Yusof Abdul Wahhab Nimatallah, Adib Abdullah Al-Zamil, Mohammad Ahmed Zenel, Abdul Aziz Hamad Al-Jomaih, Dr. Ibrahim Abdul Rahman Al-Barrak and Saleh Mohammed Al-Hajaj.
The bank’s shareholders approved completion of total subscription of the bank’s capital, establishment expenses and appointment of Al-Jareed & Co. and Al-Fozan & Banqa as auditors of the bank and their retainers.
The assembly is considered to be the first meeting of the bank’s shareholders following a historic initial public offering (IPO) identified as the largest in the history of the Kingdom with 8.8 million subscribers who paid in more than SR77 billion. A total of 2.2 million subscription applications were submitted during the period of the IPO with the participation of all ten of the Kingdom’s banks through more than 1,200 branches.
Albilad, established from the merger of eight local money exchange companies, is Saudi Arabia’s 11th bank and the second Islamic bank after Al-Rajhi Banking and Investment Corp.