al khaliji

Al Khaliji, the new Doha based bank, today opened its Initial Public Offering (IPO) available to Qatari nationals only. The offer period runs to 29 th 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 errorfree 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 AlMalki, 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 worldclass 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 sharebuying 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 Gulfwide 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, AlAhli 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.