Published: July 7, 2009
Qatar National Bank-Syria, a private Syrian-Qatari bank, has announced the launch of 34% of its total equity in an initial public offering (IPO) which will raise US$37.15mn.
Pioneers Syria, a licensed investment and brokerage firm based in Damascus, has been appointed to manage he IPO which opens to subscribers on July 12, with the subscription ending on August 10.
QNB, which is the largest bank in Qatar in terms of assets, lending capabilities and market capitalisation, received approval in 2008 from the Central Bank of Syria to establish Qatar National Bank-Syria as a private stock company.
Total paid up capital is S£5bn (US$108.6mn). This is divided into 10mn registered shares, with QNB retaining 49%, Syrian government organisations holding 15% and private investors holding 2%.
The newly established bank’s IPO will put up the remaining 34% or 3,400,000 shares for subscription by Syrian private investors at a nominal share value of S£500 (US$10.86) making up the total value of shares available for subscription at S£1,700mn.
The QNB-Syria IPO will be one of the biggest in Syria during 2009.
Headquartered in Damascus, QNB-Syria is expected to start operations during the Q4 this year offering a full range of retail, corporate, investment, treasury and wealth management, products and services for individuals, corporate institutions and government entities.
QNB-Syria has also outlined plans to expand by opening a number of branches in the Syrian market, including two locations in Damascus in the first year of operation, with the opening of additional branches in Damascus and other provinces in subsequent years.
This partnership between Qatar and Syria further strengthens political and economic ties between the two countries. It also advances QNB’s strategic plan of increasing its presence in selected countries in the Middle East and North Africa region, according to the bank.
QNB has branches in London, Paris, Kuwait, Oman, Yemen, Singapore, and Sudan, with representative offices in Libya and Iran. QNB has strategic stakes in a number of financial institutions including 33.5% stake in the Housing Bank of Trade and Finance (HBTF) in Jordan, 24% in Commercial Bank International in the UAE, and a 50% stake in the Qatari-Tunisian Bank.