Invest In a Thoroughbred - Unicorn Investment Bank embarks on US$248.2m capital raising
Bahrain, 30 May 2006 - Unicorn Investment Bank is seeking to raise US$ 248.2m in new capital as part of its ongoing growth strategy and vision of becoming a global force in Islamic investment banking. The fresh capital will be used to fund growth through strategic mergers and acquisitions, which in turn will allow the Bank to offer clients a fully integrated range of competitive Shari’ah-compliant products and services on a global basis. It will also enable Unicorn to diversify its capital base and enhance the Bank’s earnings potential going forward.
The fund raising will be staggered, commencing with the announcement of today’s $248m private placement targeting both high-net-worth individuals and institutions. Provided market conditions are favorable, Unicorn plans to follow this with an initial public offering in the Middle East in the first quarter of 2007.
This is the second round of capital raising for Unicorn, which secured initial paid-up capital of US$ 111m in 2004 and has been prompted by the Bank’s strong success based on its original business plan. In its first eight months of business, Unicorn achieved revenues of US$ 36m and earnings of US$ 17.06m, well ahead of the Bank’s own predictions. The Bank recently reported second-year revenues of US$ 52.6m and earnings of US$ 24.2m for 2005 financial year. This has been followed by Q1 2006 revenues of US$ 25.5m and earnings of US$ 16.02m.
Majid Al-Sayed Bader Al-Refai, Managing Director & Chief Executive Officer of Unicorn Investment Bank, commented: “To seize international opportunities, Islamic banks must now compete head to head with the global financial institutions who have built strength in their worldwide franchises through product and advisory innovation and sustained investment in R&D, human capital and acquisitions. This new capital will drive our growth- through- acquisition strategy as we extend our reach and coverage in the Middle East and push into Malaysia and South East Asia. Our vision is to build a global Islamic Investment bank and this capital raising is a significant step forward to achieving this vision.”