Global Investment House has announced plans to offer Global Depositary Receipts (GDRs) representing ordinary shares to international institutional investors.

The GDRs will be listed on the London Stock Exchange.

Global intends to issue up to 35 per cent of its share capital in the offer. “For regulatory reasons, the increase was approved at a price of 930 fils per share, but the company intends to set the final price following a book-building exercise, which will then be ratified by its shareholders at an ordinary general meeting following the completion of such exercise,” said a statement.

Global, a leading asset management and investment banking company operating across 16 countries in the GCC and the wider Mena region, is currently listed on the Kuwait Stock Exchange, Bahrain Stock Exchange and the Dubai Financial Market, and as on April 20 had a market capitalisation of $3.3 billion (KD889 million).

Since its foundation in 1998, Global has demonstrated a strong track record of growth. In the last five years, Global has increased revenues by a compound annual growth rate (CAGR) of 72 per cent to KD154 million, and profit after tax by a CAGR of 65 per cent to KD91 million in 2007.

Commenting on the intention to seek a London listing of Global’s GDRs, Maha Al-Ghunaim, chairperson and managing director said: "Global’s focus on the rapidly expanding asset management and financial services market in the GCC and wider Mena region provides considerable opportunities for growth.  Raising additional equity through this GDR listing will enable Global to capitalise on these opportunities through expanding geographically and enhancing our strong product and service capability to build significant value for our clients and shareholders.”

The preliminary prospectus for the offer is expected to be published on or about May 2, 2008.

The proceeds of the offer will be used to, among other things: Fund organic growth as the company expands its presence across the GCC and Mena region; make co-investments in Global managed funds as it continues to grow its assets under management in the short and medium term; and  make selective acquisitions of asset management and / or commercial banking businesses where appropriate opportunities arise to enhance its distribution channels and product offering in the GCC region and other emerging markets.

HSBC has been appointed as sole global coordinator and Deutsche Bank AG, London Branch, HSBC, JPMorgan and UBS Investment Bank have been appointed joint bookrunners for the offer. Global is acting as co-lead manager.  – TradeArabia News Service