70% of its shares go to public and 30% to GIF, PPA & GOSI Al-Inmaa' Bank Appoints Samba as Financial Advisor and IPO Manager for the Greatest ever Subscription Process in the Kingdom's History on 1.05 b Shares
General Investment Fund and Al-Inmaa' Bank, a Saudi banking joint stock company, have entered into Agreement with Samba Financial Group to appoint Samba as the Financial Advisor and IPO Manager for floating 70% of Al-Inmaa' Bank Share Capital totaling to SR15 billion for public subscription. This is the largest IPO in the banking sector ever in the history of Saudi Arabia. 1.05 billion shares are intended to be floated for public subscription at par value of SR10 per share without any issuance premium. The remaining share capital (30% of the shares) will be distributed equally between the General Investment Fund (GIF), Public Pension Agency (PPA) and the General Organization for Social Insurance (GOSI).
Efforts are under way to finalize establishment and administrative formalities of the Bank, which will provide specialized banking services to the highest industry standards and in compliance with Shariah Principles prompted by the high demand in the local market on Islamic Compliant banking services, so as to boost the ability and performance of Saudi Banking Sector to cater for the escalating demand.
Mr. Al Miman says "this Agreement is a major step within the context of the efforts that are being put together to materialize the vision of the Custodian of the Two Holly Mosques, and establish this gigantic financial institution which will constitute a qualitative shift in the banking sector. The SR15 billion share capital will position the bank on top of all other banks in terms of size on the local level as well as in the Arab World, which will enhance its ability to support the performance of Banking sector in Saudi Arabia, foster competition, improve and broaden the scope of banking services, in light of enabling economic environment as well as sound financial and monetary policies in the Kingdom.
We have chosen Samba as the Financial Advisor and IPO Manager after applying a series of technical and financial criteria and based on Samba's proven track record and wide experience in this regard in addition to its extensive resources which will ensure success of this high caliber IPO'. Mr. Eisa Al-Eisa, Samba Managing Director & CEO, extended his thanks and appreciation to Al-Inmaa' Bank's Management for their confidence in Samba as the Financial Advisor and IPO Manager for the largest IPO engagement in the Kingdom's history. "Samba is so proud to be involved in this crucial stage that witnesses the foundation of this gigantic bank, which we believe will assume a pivotal role in developing banking sector performance, and be a major partner to give further momentum to the national economy" Al Eisa says.
"This selection signifies the confidence in Samba to manage high caliber IPOs and participate in crystallizing the vision of our farsighted leader to guide our people toward investment and saving, solicit their participation in building huge economical firms, and direct their savings toward viable long term investments aiming eventually at elevating their living standards and improving their income" Al Eisa says, and adds "Samba will mobilize all of its technical and managerial capabilities and know-how to create an ideal environment for this engagement to develop successfully to the highest standards and the best expectations.