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ABG to open forthcoming IPO on May 27

The anticipated size of this phase will be around $580 million, and accordingly the overall size of the transaction will be around $ 1 billion, ABG officials announced here yesterday (Tuesday) at a Press conference.

ABG also announced that the subscription price of the Group's shares will be $3.08 about (SR12, BD1.2, UAE Dirham 11.03) per share. While 80 per cent of the shares will be allocated to major investors, the remaining 20 per cent will be allocated to small investors. All nationalities are eligible to participate.

Shaikh Saleh Kamel, ABG Chairman said that "Islamic banks in the region are moving in the right direction in enhancing their financial resources and diversifying their sources of income in accordance with a prudent vision based on inviting the community to participate in the ownership of their wealth. This is exactly the same direction that ABG is taking now by offering its shares for public subscription," while highlighting that the performance of ABG during the last three years was outstanding, resulting in an increase in net profits and earnings distributed to depositors."

He said the decision to "go public" was taken five years ago and today's IPO is the result of that strategic plan.

"A clear indicator of this is the success of the pre IPO phase, were a number of strategic investors were invited to subscribe to the pre-IPO (private placeme nt), including major investors from the region as well as institutional and government investors. The invitation was met with an overwhelming response, considering the attractive investment opportunity offered coupled with the investors' confidence in the business of the Group, its activities and the expected return on investment. Based on the structure of the transaction, it was decided to allocate $425 million to the investors in this private placement stage," he noted.