JEDDAH, 27 May 2006 — The Al-Baraka Banking Group (ABG), the Bahrain-based Islamic banking group, is launching its initial public offering (IPO) today. Officials confirmed that all preparatory work for the IPO has been completed. “In order to ease the process, we’ve taken up all necessary arrangements so that every one could participate easily through a network of more than 117 receiving bank branches in GCC. Thirteen leading banks in the region are leading this process,” the spokesman for ABG told Arab News yesterday.
“The ABG IPO is one of the largest IPO transactions in the region in the recent past, which is offered by a financial group that has been in existence for more than 26 years and owns more than 10 banking units in various Islamic and Arab countries,” ABG Chairman Shaikh Saleh Kamel said.
“The funds raised will principally be used for expanding our operations in the markets of the countries in this region especially Saudi Arabia and the UAE, and other countries in the far east as well as in enhancing the capital of our banks that achieved good results for the Group such as the group’s banks in Turkey, Egypt, Algeria and Jordan,” he added.
Kamel expressed his sincere thanks and appreciation to the Ministry of Industry and Commerce, Bahrain Monetary Agency and Bahrain and Dubai Stock Exchanges for the support they extended to the ABG in launching its IPO in the best possible manner. He also expressed his appreciation for all banks and financial institutions that subscribed at the private placement phase as strategic partners, and as such they represent an added value that will benefit everyone.
ABG Chief Executive Adnan Ahmed Yousif said that the group would, at this public subscription phase that starts today, offer 188.9 million shares comprising 120 million new shares and 68.9 million existing shares for public subscription. The existing shares comprise 43.5 million shares belonging to strategic shareholders and 25.4 million shares belonging to founding shareholders.
