Trowers & Hamlins advises Bank Nizwa on Oman's second largest IPO
30 May, 2012
Oman’s first Islamic bank, Bank Nizwa, has successfully closed its initial public offering (IPO).
The flotation was 11 times over-subscribed and raised RO 681 million (US$ 1.77 billion (subject to reconciliation)) from 37,084 applications, making it Oman’s second largest IPO and largest IPO of a financial institution in Oman.
Bank Nizwa was seeking to raise RO 60 million through the IPO, 40% of its founding share capital.
International law firm Trowers & Hamlins provided legal advice to the Founding Committee. Trowers & Hamlins will continue to advise Bank Nizwa on Oman’s new regulatory framework for Islamic Banking expected shortly, and on securing a banking licence from the Central Bank of Oman./p>
Edward Rose (pictured), Partner at Trowers & Hamlins, said “We are excited to be working so closely with Bank Nizwa and to be part of introducing Islamic banking to Oman. This is a significant evolution in banking practices within the Sultanate. The Bank Nizwa team has worked hard on the IPO process and has been rewarded with fantastic investor appetite. We are delighted to have been involved.”
“With no IPO of a start-up company in Oman for several years, investors were clearly keen to purchase shares in the country’s first Islamic bank. The set up of Bank Nizwa, and the potential for more Islamic banking entities to be formed, may also inject further liquidity into the Omani banking market and wider economy.”
Ahmed bin Saif Al Rawahi, the Chairman of the Founding Committee, commented: “Bank Nizwa intends to be the first fully Shari’a-compliant bank in the country and we have received an overwhelming response from investors. We are impressed with the strategic guidance provided by Trowers & Hamlins on the legal and regulatory framework governing the IPO. We look forward to the bank opening its doors.”