Al Baraka to raise $100m capital through IPO for Syrian investors

Promoters snap up 65% of equity required to expand banking network.

Gulf News

Dubai: Bahrain-based Al Baraka Banking Group BSC said Al Baraka Bank Syria shares were being offered to Syrian investors in an initial public offering (IPO) that started on Sunday. The IPO will end on November 4.

Al Baraka Bank Syria capital will be five billion Syrian pounds ($100 million). Promoters have subscribed to 65 per cent of the capital, which amounts to 6.5 million shares worth 3.25 billion Syrian pounds (Dh259.2 million).

Of this, 50 per cent of shares valued at 1.625 billion Syrian pounds have already been paid.

The shares that will be offered under the IPO are 3.5 million shares with a value of 1.75 billion Syrian pounds and representing 35 per cent of the bank's capital.

The issue price is 500 Syrian pounds per share and the subscribing shareholders will be required, upon subscription, to pay 50 per cent of the nominal value of the share, and the remainder of the subscription within a period not exceeding three years from the date on which the bank commences its operations.

The IPO is for Syrian investors only because the foreign ownership stake has already been fully subscribed by the promoters.

The IPO process will be managed by Banque Bemo Saudi Fransi, Syria International Islamic Bank, Arab Bank (Syria) and the Commercial Bank of Syria.

Adnan Ahmad Yousuf, member of the board of directors and president and chief executive of Al Baraka Banking Group, said: "[The] launch of Al Baraka Bank Syria with a capital of $100 million reflects our full confidence in our abilities and financial position to proceed with the implementation of the plans that we set early this year in expanding our geographical network through the establishment of new banking units and the opening of more branches for the existing units."