Al Izz Islamic Bank to float in September

Muscat: Al Izz Islamic Bank, the second sharia-compliant lender being formed in Oman, plans to float 40 per cent of its shares in September, a bank official said on Thursday.

Oman awarded two Islamic banking licenses last year, to Al Izz and Bank Nizwa, reversing its position as the only Gulf Arab state without banks that offer solely Islamic products and services.

“We are planning our IPO issue worth 40 million rials ($104 million) in September,” a senior bank official, who declined to be identified, told Reuters.

The official said the initial public offering will represent 40 percent of the bank’s 100-million rial capital. Bank Muscat will act as issue manager.

In June, Bank Nizwa, the sultanate’s first Islamic bank, raised 60 million rials in a similar-sized IPO that was 11 times oversubscribed.