The Long Wait is Over - Finally

From Ithmaar's press release on the BSE this morning.

“The CBB’s formal approval allowed Ithmaar to immediately implement its highly anticipated plans for a comprehensive reorganization with its wholly-owned subsidiary, Shamil Bank,” said HRH Prince Amr. “The reorganization involved both banks pooling their resources together to create a single, more efficient and significantly stronger retail- focused bank with an Islamic license under the Ithmaar brand. Although the Shamil Bank brand now no longer exists, the reorganization is entirely seamless and there is no change, whatsoever, in customer, depositor or investor accounts or relationships,” he said.

The unbearable suspense ends with one quick stroke, a seamless stroke at that.

Ithmaar Bank Rights Issue - Only 52% Take Up

Ithmar Bank announced on the BSE that on 28 March it had held its Ordinary General Meeting of Shareholders.

Tucked in the announcement were the results of its recent Rights Offering. 

“The subscription period ended on Thursday, and we are pleased to report that the rights issue has raised $103 million,” said Ithmaar Bank Chief Executive Officer Mohamed Hussain.  “The Offering was an opportunity for current shareholders to further consolidate their stake in Ithmaar Bank – and the fact that it proved so successful is testimony to our shareholders’ unwavering faith in the Bank’s potential,” he said.

Sounds good.  What wasn't mentioned was that the Offering was for US$199.3 million.  That means a 52% take-up.  Not exactly a roaring success.

Ithmar was hampered by two things:

1. A US$235 million loss for Fiscal 2009.
2. The fact that Bahraini Companies Law does not allow a company to offer its shares for less than par value.  Ithmar's par value is US$0.25 per share.  It last traded at that level on 19 October 2009.  It currently trades at about US$0.19 per share.  A difficult sale indeed.

Ithmar had hoped to raise US$400 million to finance its conversion to a retail /commercial Islamic Bank from an investment bank.  The first leg has not gone so well.  

It's hard to imagine that a US$200 million or US$300 million (if they try to make up the reduced up take on the Rights Offering) mandatory convertible sukuk is going to fly off the shelves.  Unless, Deutsche has another client?

Faysal Private Bank Appoints Mark Koch as CEO

Reuters story here.

Previous posts here and here.

Faysal Private Bank Geneve CEO Resigns

Reuters reports that Marco Rochat has resigned.

Earlier post here.

Real Estate Problems at Faysal Islamic Geneva?

If true, not a pretty story.

Not from a return on investment perspective nor a fee perspective.