Business | Banking
Seventh Islamic bank enters UAE
Ajman Bank PJSC (under formation), an Islamic bank headquartered in Ajman with a total capital of Dh1 billion and the seventh Islamic bank in the UAE, yesterday announced its intention to raise Dh550 million through an initial public offering.
- By Babu Das Augustine, Banking Editor
- Published: 17:27 February 11, 2008
- IPO size: 550 million shares
- Ministry of Finance and Industry: 27.5 million shares
- Non UAE investors: 100 million shares
- UAE national investors: 422.5 million shares
- The bank expects to open 10 branches across the UAE during the first two years, primarily in Abu Dhabi and Dubai and projects to breakeven in the first year of operation.
Dubai: Ajman Bank PJSC (under formation), an Islamic bank headquartered in Ajman with a total capital of Dh1 billion and the seventh Islamic bank in the UAE, yesterday announced its intention to raise Dh550 million through an initial public offering.
The IPO will be open for subscription from February 17 to 27.
The new bank, the first banking institution to be incorporated in Ajman, will have 25 per cent equity participation from Government of Ajman and 20 per cent of the shares have been placed with institutional investors and high networth individuals.
The bank intends to target the rapidly expanding Sharia financial services market in the UAE.
"Ajman Bank will play a significant role in the economic development of Ajman and of the UAE. Its unique offer to the market will help to change the way customers experience banking. Ours is a long-term vision to create a business and a brand that will become the UAE's, and in the future, the GCC's favourite financial services brand," said Shaikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank.
The bank plans to start retail banking operations by the fourth quarter of this year while investments and treasury operations are expected to begin in the third quarter.
The bank with its own independent Sharia board has plans to offer comprehensive Islamic banking solutions including real estate and mortgage financing.
"The UAE's Sharia banking market offers significant potential. We can change the current financial services model and create a strong customer focused brand offering choice and high levels of customer service to everyone in the UAE," said Yousuf Khalaf, CEO of Ajman Bank.
The IPO is for 550 million ordinary shares, or 55 per cent of the total shares of the bank. The minimum subscription will be for 2000 shares at Dh1 per share, in addition to Dh0.02 per share in administrative costs.
While the issue is advised by HSBC, subscriptions can be made through participating banks such as Abu Dhabi Islamic Bank, Dubai Bank, Emirates Islamic Bank, Dubai Islamic Bank and Noor Islamic Bank. Following the Offering and the completion of the incorporation process, the Bank will apply to list its Shares on the Dubai Financial Market.
Statistics: 10 branches across nation
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