JEDDAH, 29 March 2006 — Albaraka Banking Group (ABG), one of the largest Islamic banks in the world, intends to increase the number of its branches to 250 within the next five years. At present the group has nearly 200 branches in 10 countries, including Egypt, Jordan, Lebanon, Algeria, South Africa, Turkey and Pakistan.
The Bahrain-based Albaraka, which will go public shortly, has signed an agreement with Gulf Marcom Group (GMG) to advertise and market its initial public offering (IPO). Khamis Al-Muqla, chairman of GMG, which is also based in Bahrain, welcomed the association between the two groups and commended ABG’s longstanding experience in Islamic banking services.
“We are looking forward to the success of the IPO with the support of GMG, which is one of the leading media organizations in the region having considerable expertise in marketing IPOs,” said Adnan Ahmed Yousuf, executive president and member of the board of directors of ABG.
Yousuf noted the leading role played by Saleh Kamel, chairman of ABG, in introducing and promoting Islamic banking. “The founders of the group took this strategic decision to make Albaraka a pioneering Islamic banking group by increasing the base of its shareholders and capital,” he said about the IPO. Yousuf said the capital increase would not only increase the group’s activities but also lead to its expansion to new markets. “The new move would also help create a banking institution having a strong capital base, capable of competing with big traditional and Islamic banks operating in the Gulf and beyond,” he added.
The bank’s shareholders have already endorsed its conversion into a public joint stock company. An extraordinary general meeting of the group approved the necessary amendments to ABG’s memorandum and articles of association. It also approved the proposed listing of the bank’s shares on regional and international stock exchanges.
Gulf International Bank (GIB) has been mandated to act as financial adviser for the IPO. GIB was selected following proposals received from a number of reputable investment banks and institutions. The selection was based on GIB’s knowledge of the regional capital markets and its track record in executing large transactions.