DOHA, 17 April 2007 — Al-Khaliji, the new Doha based bank, yesterday started its initial public offering (IPO) for Qatari nationals only. The offer period runs until April 29.
Al-Khaliji will bring a new banking approach to the region in response to research that shows a demand for personalized, easy to understand and error-free banking.
This IPO provides an opportunity for a broad base of Qatari investors to participate in Al-Khaliji’s exciting future. The bank is offering 17 percent of its capital, or 120 million ordinary shares with a par value of 10 Qatari dinar per share. Investors will pay 50 percent of the par value at the time of application, plus 2.5 percent of the par value as establishment expenses. To ensure the widest possible participation, applicants can apply for a maximum of 5,000 shares per person. Given the part paid structure, Al-Khaliji will initially raise up to 600 million dinars in capital from the IPO.
Tariq Al-Malki, chairman of Al-Khaliji, said: “We have made rapid progress since our establishment in January this year. We have recruited a highly experienced international executive team, obtained the bulk of our capital requirements from prominent shareholders across the GCC and are building the infrastructure of a truly world-class bank. This IPO gives Qatari investors an opportunity to participate in the long-term growth of the region’s financial sector and the development of the nation.”
Reflecting the bank’s new thinking, the application process itself breaks the mould with a simplified share-buying procedure allowing investors to complete applications either online or with the tick of a box using Al-Khaliji’s new format.
David Proctor, head of the Al-Khaliji executive team, said: “Like the IPO process, the services we will offer recognize that customers are demanding a radically new approach from their bank. Our aim is to provide friendly, modern, clear banking made possible by our commitment to the innovative use of new technology and dedication to customer service”
Following completion of the IPO, the bank’s 191 founding shareholders, drawn from Qatar, Oman, the UAE, Kuwait and Bahrain will own 43 percent of Al-Khaliji’s authorized capital. Paid at 50 percent, their subscription in 312 million shares raised an initial 1.56 billion dinars in ordinary capital. A recent Gulf-wide private placement of 288 million shares paid at 50 percent is raising another 1.44 billion dinars, or 40 percent of the bank’s authorized capital.
The receiving banks for applications are Commercial Bank of Qatar, Qatar National Bank, Doha Bank, Al-Ahli Bank, Arab Bank, United Bank Limited, HSBC and Standard Chartered Bank .
Al-Khaliji will start full banking operations in Qatar by the final quarter of 2007 and plans subsequently to develop into other GCC markets.
