Albarak Pakistan IPO planned

Bahraini Islamic bank Albaraka is planning to float 25 percent of its unit in Pakistan to bring its capital to $100 million, the minimum for a Pakistani bank, an Albaraka official said on Monday.

“We are thinking of having an IPO in Pakistan and turning it (Albaraka Pakistan) around and making it an independent bank,” Albaraka General Manager Salah Zainalabedin told Reuters. “In Pakistan right now they (banking authorities) are looking at a minimum capital of $100 million so we will probably be looking at that size,” he added.

The IPO was to take place “soon” but not in the next two months, he said. Zeinalabedin said Albaraka had obtained the approval of Pakistan’s central bank for the IPO, and planned to sell a 25 percent stake to private investors, while retaining 50 percent. Albaraka Turk, Albaraka’s affiliate in Turkey, plans an IPO next year, its general manager said last week. Zeinalabedin also said Albaraka hoped to arrange up to $500 million worth of Islamic bonds, or sukuk, in the coming year through two or three deals with issuers.

Source: The News