Amãna Bank goes for IPO and listing on the Bourse

Wednesday, 27 November 2013 00:22 - - {{hitsCtrl.values.hits}}

Amãna Bank, Sri Lanka’s premier licensed commercial bank operating in full compliance with Islamic banking principles, has received the green light from the Colombo Stock Exchange to be listed on the bourse through an IPO. The bank which is expected to be listed on the Diri Savi Board, will issue 214,300,000 new Ordinary Shares at Rs. 7 per share with an option of issuing a further 71,500,000 new Ordinary Shares.

If fully subscribed, the Issue would raise Rs. 1,500,100,000 and if the option is exercised and fully subscribed the total Issue would raise Rs. 2,000,600,000. The Amana Bank IPO marks the first equity IPO by a licensed commercial bank during the last two years. This IPO will also provide the first opportunity to the Sri Lankan market to invest in the Islamic banking industry which in the current global context is a growth industry. Speaking on the IPO, Amana Bank Chairman Osman Kassim said: “The present and future success of the bank is owing to the vision we had for this unique non-interest, asset based model of banking, which ensures that risks and rewards are shared with the bank and its customers. I am happy that people from many faiths of life have confided their trust upon us and in our banking model and this IPO provides an opportunity for more people to participate in the ownership of the bank.” The bank’s Managing Director/CEO Faizal Salieh said: “We have made a distinct footprint in the banking sector with our unique model of banking and have embarked on an aggressive journey with a business strategy that is aligned to the country’s economic strategy. We have a clear focus on the consumer and SME sectors which carry the potential for future economic growth. The funds raised from this IPO will be channelled to meet the regulatory minimum capital requirements in 2013 and 2015 as well as to support the bank’s growth and expansion.” Salieh added: “In the last two years of operations the bank has achieved a remarkable 188% growth in customer financing, a 70% growth in customer deposits and has expanded its customer base to over 100,000 customers through a growing network of 24 strategically located branches. “In the first nine months of this year the bank has recorded an impressive growth of approximately Rs. 4.1 billion (57%) in its customer financing and Rs. 3.6 billion (27%) in its deposit portfolio. This indicates the tremendous potential for our model of banking and the unique value proposition we have brought to the market. Our business model and the principles we work on are clearly seeing wide acceptance across all communities.” At present, the bank has five strategic investors of which three are international banking institutions, namely Islamic Development Bank of Saudi Arabia, Bank Islam Malaysia and AB Bank of Bangladesh who were convinced of the bank’s performance and the potential for Islamic banking in Sri Lanka prior to their investments. The IPO will open on 11 December 2013. Prospectus and application forms will be made available from 28 November 2013 at all stockbrokers, Amãna Bank branches, selected HNB branches and online at www.cse.lk and www.amanabank.lk. The Managers to the Issue are Acuity Partners Ltd., while SSP Corporate Services Ltd. are the Registrars to the issue.