Bank Muscat plans to open branches in Saudi Arabia and other Gulf countries, it said on October 05, after raising capital through a $149 million issue of global depository receipts that listed in London.
Chairman Sheikh Abdul Malik bin Abdullah Al Khalili said Oman's biggest bank had received a licence to open a branch in Riyadh and was seeking similar licences from Kuwait and Qatar.
Excluding issue costs, premium value and other taxes, the GDR issue will increase the bank's capital to 76 million Omani rials ($197.4 million) from 69 million, he told Reuters.
Citigroup is bookrunner for the issue of 6.25 mln GDRs, priced at $23.75. "This capital increase will be used to expand our operations. The bank is planning to be regional," he said. Bank Muscat has a branch carrying the same name in Bahrain and owns a 25 percent stake in an Indian bank.
"We have recently received a licence to set up a branch in Saudi Arabia, in Riyadh. The Saudi market is large, and the bank is seeking to have a presence in more regions like Jeddah and the Eastern province," he said. "We have submitted requests to open branches in Kuwait and Qatar.
"We are also setting up a 10 million rial investment company in Dubai emirate with UAE partners, and we expect the new company will be operational by the end of the year," he said.