Al Khaliji, the new Doha based bank, today opened its Initial Public Offering (IPO) available to Qatari nationals only. The offer period runs to 29th April 2007.
Al Khaliji will bring a new banking approach to the region in response to research that shows a demand for personalized, easy to understand, and error-free banking.
This IPO provides an opportunity for a broad base of Qatari investors to participate in Al Khaliji’s exciting future. The bank is offering 17% of its capital, or 120 million ordinary shares with a par value of QAR 10 per share. Investors will pay 50% of the par value at the time of application, plus 2.5% of the par value as establishment expenses. To ensure the widest possible participation, applicants can apply for a maximum of 5,000 shares per person. Given the part paid structure, Al Khaliji will initially raise up to QAR 600 million in capital from the IPO.
Tariq Al-Malki, Chairman of Al Khaliji said:
“We have made rapid progress since our establishment in January this year. We have recruited a highly experienced international executive team, obtained the bulk of our capital requirements from prominent shareholders across the GCC and are building the infrastructure of a truly world-class bank. This IPO gives Qatari investors an opportunity to participate in the long term growth of the region’s financial sector and the development of the nation.”
Reflecting the bank’s new thinking, the application process itself breaks the mould with a simplified share-buying procedure allowing investors to complete applications either online or with the tick of a box using Al Khaliji’s new format.
David Proctor, Head of the Al Khaliji Executive Team said:
“Like the IPO process, the services we will offer recognize that customers are demanding a radically new approach from their bank. Our aim is to provide friendly, modern, clear banking made possible by our commitment to the innovative use of new technology and dedication to customer service”
Following completion of the IPO, the bank’s 191 founding shareholders, drawn from Qatar, Oman, the UAE, Kuwait and Bahrain will own 43% of Al Khaliji’s authorized capital. Paid at 50%, their subscription in 312 million shares raised an initial QAR 1.56bn in ordinary capital. A recent Gulf-wide Private Placement of 288 million shares (again, paid at 50%) is raising another QAR 1.44bn, or 40% of the bank’s authorized capital.
The receiving banks for applications are Commercial Bank of Qatar, Qatar National Bank, Doha Bank, Al-Ahli Bank, Arab Bank, United Bank Limited, HSBC and Standard Chartered Bank .
Al Khaliji will start full banking operations in Qatar by the final quarter of 2007 and plans subsequently to develop into other GCC markets.
For further details on the IPO, the bank and opportunities at Al Khaliji, please visit our website at www.alkhaliji.com
Al Khaliji
Al Khaliji was founded in Doha in January 2007. Since obtaining its commercial license at the beginning of the year, the bank’s world-class management has set about creating the infrastructure that will allow Al Khaliji to provide a fresh approach to banking in a rapidly growing and evolving market.
Al Khaliji will be underpinned by the highest standards of service, easy to understand products, and reliable, innovative technology. Built in response to customer demand for a bank that is designed to meet their needs and their lifestyles, Al Khaliji will support its customers as their circumstances evolve over time.
A world-class management and highly trained staff will transform the banking experience of customers in Qatar and, through later expansion, the wider GCC. Al Khaliji will open its branch network to customers by the end of 2007
Al Khaliji IPO
On April 15th, Al Khaliji launched its Initial Public Offering (IPO) to Qatari investors.
The intention is to broaden ownership of the bank, allowing investors to share in the success of the bank as it grows. This IPO will also create a new benchmark in the local market for the speed and simplicity it brings to the application process.
17% of the bank’s shares will be offered to Qatari nationals. 43% of the bank’s capital has already been contributed by Al Khaliji’s founders, drawn from around the GCC. A further 40% has been raised by a GCC-wide private placement. In total, Al Khaliji will have an authorized capitalization of QAR 7.2bn.
