Takaful News - Bahrain: Solidarity to Launch IPO at the End of the Year
Source: Middle East Insurance Review | Sep 2006
Bahrain-based Solidarity, one of the largest takaful companies in the world, aims to float on the Bahrain Stock Exchange and other bourses in the Gulf region by the end of 2006.
The initial public offer, in which the company plans to attract US$50 million, will be the third stage of Solidarity’s capital raising drive.
The company said that the first phase of the exercise has been completed, following a successful rights issue involving US$50 million.
The second stage of the process is a private placement to raise US$75 million.
In the first quarter of this year, Solidarity announced that it would increase its paid-up capital by US$175 million to US$275 million and its authorised capital from US$300 million to US$500 million.
Solidarity proposed the capital increase to provide additional financial muscle to expand into major international markets. The company is eyeing entry into markets such as Kuwait, Malaysia, Oman and the UAE.
Earlier this year, the Malaysian central bank, Bank Negara, issued a takaful licence to Solidarity.