There are many observers watching closely to see how the Omani Islamic banking market will shape up. This week news surfaced that Alizz Islamic Bank, the second Islamic bank to be contemplated in Oman since the change in law that permitted Islamic banks to operate in the Sultanate, hopes to launch a domestic initial public offering (IPO) on the local Muscat Securities Market by next week. Alizz Islamic Bank wishes to be the bank of choice for corporates, individuals and businesses in Oman. Oman’s Capital Market Authority has already given approval for the IPO through public subscription.
Oman-headquartered Huriah Company, Aabar, the investment company headquartered in Abu Dhabi and Tasameem, the private investment company based in the UAE are the promoters behind Alizz Islamic Bank.
Alizz Islamic Bank will be capitalized at RO 100 million and the IPO expects to float 40 per cent of this equity with a value of RO 40 million. It is likely that strongly positioned Islamic banks in the rest of the GCC will be looking to take a stake in Alizz Islamic Bank with banks in the UAE said to be lining up for a slice.
The IPO closes on October 21.