(Corrects currency in fourth paragraph.)
The Bank of London & The Middle East Plc, the largest Islamic bank in Europe, said it plans to list on the Nasdaq Dubai stock exchange in October, becoming the first company to join the bourse in more than four years.
The bank expects to price the shares at $2.57 apiece, giving it an implied market value of about $503 million, Chief Financial Officer Richard Williams told reporters in Dubai today. Existing shareholders, most of which are based in Kuwait, will swap their shares for those in a new listed entity, BLME Holdings, with no new capital being raised, he said.
The last company to list on either of the emirates’ two stock exchanges was Drake & Scull International (DSI) in March 2009. The bank’s plans come as Dubai’s economy recovers and its stocks rebound from the global credit crisis. The DFM General Index has climbed 64 percent this year, more than any of the 50 largest equity markets, according to data compiled by Bloomberg.
The bank is “well capitalized” until 2016, with almost 250 million pounds ($398 million) at its disposal, Chief Executive Officer Humphrey Percy said at the same press conference.
“If at that time we decide we want to increase our capital, we think we’ll be well positioned having listed on Nasdaq Dubai,” he said.
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