• Home
• /
• Business

Al Salam Bank IPO oversubscribed 63 times

Public subscription opened for residents of UAE and Bahrain on February 5, 2006 and within two weeks collected an amount in excess of 2.7 billion Bahraini dinars.

Presenting the results of the IPO, Hussein Mohammed Al Meeza, Vice-Chairman of the Founders Committee of Al Salam Bank, said: "We are happy with the IPO's unprecedented success and the investor confidence in the bank."

"Al Salam Bank investors have made a safe and insightful investment decision that has huge potential for growth. The IPO received support from individuals of all nationalities in Bahrain and the UAE along with institutional investors. The smooth and organised conduct of the IPO aided subscriber confidence," he added.

The Al Salam Bank IPO was the largest in the Kingdom's history. It offered 35 per cent of its paid-up capital in the form of 42 million ordinary shares to individual and institutional investors.

Subscriptions for a minimum of 1,000 shares were invited at BD1.050 or Dh10.29 per share, including service charges. 65 per cent of the bank estimated at BD78 million (Dh760.62 million) is held by its founders. These are Emaar Properties, Amlak Finance, Dubai Investment Group, Dubai Holding, Global Investment House, Lebanese Canadian Bank, Al Salam Bank in Sudan and Aman Insurance and Re-insurance Company. In addition, a large number of establishments, companies and businessmen from Bahrain, UAE and the KSA are also founder shareholders