Text size:

  • Small
  • Normal
  • Large

alizz IPO in Oman whets Islamic investors' appetite

Islamic investors are abuzz about alizz, which is seeking to raise as much as 400 million Omani rials in an initial public offering on the Oman stock exchange on Saturday.

Islamic investors are abuzz about alizz, which is seeking to raise as much as 400 million Omani rials (Dh3.81 billion) in an initial public offering on the Muscat Securities Market on Saturday.

The initial public offering of alizz investment bank is backed by UAE investors including Abu Dhabi's Aabar Investments, Tasameem Real Estate and First Energy Oman.

The subscription opens on Saturday and will last until October 21.

The company plans to issue 400 million shares to raise 40m rials at par value of 0.102 rials per share.

"Islamic banking in Oman has the potential to draw unbanked sections of the population into the banking market," said Jamal Darwiche, the chief operating officer designate at alizz.

"Against the GCC average of 114 per cent, Oman's banking penetration was at 70 per cent in 2010, suggesting ample room for growth in the Omani banking sector, including Islamic banking."

The Oman central bank last year authorised the establishment of Islamic banks, which forbid charging interest, in a move that followed economic unrest and strikes during the Arab Spring. Other Omani lenders have been quick to enter the market.

Bank Nizwa's listing in May attracted significant demand from investors, raising 60m rials to fund the establishment of an Islamic bank in an issue that drew 681m rials in bids.

BankMuscat, which recently launched a 96.7m rials rights issue to fund the launch of an Islamic bank, which drew significant coverage levels despite the absence from the buyers of Dubai Group, the bank's second-largest shareholder.

But BankMuscat is also the only bank to have an existing network, as both alizz and Bank Nizwa are starting from scratch.

Increased numbers of issuances come as the Arabian Gulf's capital markets are expected to rebound sharply following measures announced by the US Federal Reserve and the European Central Bank last week, which markets expect to boost the US economy, quell the euro-zone debt crisis and renew global growth.

The effect of further quantitative easing measures announced by the Fed on Thursday should help bolster local equity markets as the price of oil rises and Gulf equities appear more attractive as a consequence, said Ahmed Beydoun, the regional head of equities at Deutsche Bank.That should, in turn, help the regional market for IPOs, he added.

"What's been confirmed by the Fed last week is only going to help commodity prices and real assets," he said. "I'm very confident that the equity market is going to come back very solidly."

ghunter@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Miele coffee maker making Cappuccino at Miele Gallery in Sama Tower in Dubai. The cost of this coffee maker is around Dh 17,000. Pawan Singh / The National

Space-age coffee comes at a price from Miele

Miele have taken the coffee machine to a new level with its Dh17,000 offering that is built into your kitchen.

 The bridge of Seajacks Hydra, as the wind farm installation vessel undergoes finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014. Jeffrey E Biteng / The National

In pictures: Building the Seajacks Hydra

The Seajacks Hydra, a wind farm installation vessel, is undergoing finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The rush of new supply of hotel rooms pushed Dubai occupancy rates down to 87 per cent. Sarah Dea / The National

Dubai hotel room rates rise 10 per cent

The rush of new supply pushed occupancy rates down to 87 per cent, a dip of 2.6 per cent from the previous year. Winter months are the strongest for Dubai hotels, with occupancy and prices falling to half their peaks by July.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National