Amãna Bank goes for IPO and listing on the Bourse

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http://www.cse.lk/cmt/upload_cse_announcements/1901384855239_.pdf

Will it oversubscribe in CSE   
big quantity will have to be filllled

must check the prospectus carefully

Check whether ATL gave any dividends last few years. Only I can remember is Right issues & sub dividends. Investors got nothing.
Then you can decide with new IPO.  

Obviously this should be oversubscribed.. There are many greater fools go after the names

hi
I heard about Amana bank is asset based attractive valuation  and it is fully fledged shariah based Bank .

Let ATL perform first, after that you can think about the bank.

realman wrote:hi
I heard about Amana bank is asset based attractive valuation  and it is fully fledged shariah based Bank .

Friend its ur first post, if you don't mind are u in anyway connected to the bank?

hi
any comment on this article
http://www.global-islamic-finance.com/2012/11/amana-bank-forecasts-six-fold-growth.html

Amãna Bank, Sri Lanka’s premier licensed commercial bank operating in full compliance with Islamic banking principles, has received the green light from the Colombo Stock Exchange to be listed on the bourse through an IPO.

The bank which is expected to be listed on the Diri Savi Board, will issue 214,300,000 new Ordinary Shares at Rs. 7 per share with an option of issuing a further 71,500,000 new Ordinary Shares.

If fully subscribed, the Issue would raise Rs. 1,500,100,000 and if the option is exercised and fully subscribed the total Issue would raise Rs. 2,000,600,000. The Amana Bank IPO marks the first equity IPO by a licensed commercial bank during the last two years. This IPO will also provide the first opportunity to the Sri Lankan market to invest in the Islamic banking industry which in the current global context is a growth industry.

Speaking on the IPO, Amana Bank Chairman Osman Kassim said: “The present and future success of the bank is owing to the vision we had for this unique non-interest, asset based model of banking, which ensures that risks and rewards are shared with the bank and its customers. I am happy that people from many faiths of life have confided their trust upon us and in our banking model and this IPO provides an opportunity for more people to participate in the ownership of the bank.”

The bank’s Managing Director/CEO Faizal Salieh said: “We have made a distinct footprint in the banking sector with our unique model of banking and have embarked on an aggressive journey with a business strategy that is aligned to the country’s economic strategy. We have a clear focus on the consumer and SME sectors which carry the potential for future economic growth. The funds raised from this IPO will be channelled to meet the regulatory minimum capital requirements in 2013 and 2015 as well as to support the bank’s growth and expansion.”

Salieh added: “In the last two years of operations the bank has achieved a remarkable 188% growth in customer financing, a 70% growth in customer deposits and has expanded its customer base to over 100,000 customers through a growing network of 24 strategically located branches.

“In the first nine months of this year the bank has recorded an impressive growth of approximately Rs. 4.1 billion (57%) in its customer financing and Rs. 3.6 billion (27%) in its deposit portfolio. This indicates the tremendous potential for our model of banking and the unique value proposition we have brought to the market. Our business model and the principles we work on are clearly seeing wide acceptance across all communities.”

At present, the bank has five strategic investors of which three are international banking institutions, namely Islamic Development Bank of Saudi Arabia, Bank Islam Malaysia and AB Bank of Bangladesh who were convinced of the bank’s performance and the potential for Islamic banking in Sri Lanka prior to their investments.

The IPO will open on 11 December 2013. Prospectus and application forms will be made available from 28 November 2013 at all stockbrokers, Amãna Bank branches, selected HNB branches and online at www.cse.lk and www.amanabank.lk.

The Managers to the Issue are Acuity Partners Ltd., while SSP Corporate Services Ltd. are the Registrars to the issue.
http://www.ft.lk/2013/11/27/amana-bank-goes-for-ipo-and-listing-on-the-bourse/

agree with most of you ! hope it will not be another ATL !

If successful, will help to draw the retailers back. In the past with every IPO considerable no of retailers joined CSE.

hariesha wrote:If successful, will help to draw the retailers back. In the past with every IPO considerable no of retailers joined CSE.

For the last 2 years, not even a one handful of IPOs gave a first day gains to retailers. All others failed despite their prospectus. And one, PCH is on the verge of bankruptcy..

My opinion is; companies raised what they want but investors learnt a lesson.
Obviously this IPO wud also oversubscribe but will there be real gains?

Can you get these annual reports ?
For me , it says Forbidden .

http://www.amanabank.lk/index.php/en/amana-bank/annual-report

Chinwi wrote:Can you get these annual  reports ?
For me , it says Forbidden .

http://www.amanabank.lk/index.php/en/amana-bank/annual-report

Even I couldn't get through. Since their whole business is based on the diyabariya law maybe only some peeples are allowed to download the report?

Mantharey japa karala click karoth samahara wita download wey.

Think we'll have to wait till the prospectus is uploaded to the CSE website.

Here you go 2012 and 2011 annual reports.

http://research.srilankaequity.com/t859-amana-bank-annual-reports#979


Jiggy : be mindful of your language as it can demean some people

This cannot be categorized as a bank, it is more of seetu scheme catering to a specific (whatever) following a (whatever) law.

The CBSL will need to answer why this is being allowed to publicly list. This is a seetu scheme/finance company following an ancient stone age law and catering to a specific (whatever).

Anybody promoting this will need to answer some questions
1) Why is the chairman starting his statement with a religious (whatever) mantharey? Not even BFL or PCH does this in their annual report.
2) Why is a seetu scheme following an ancient barbaric law allowed to raise money from peeple who don't have any knowledge or know the dangers of this law?
3) The employment in this "bank" seems to be based on racism. More than 90% of the directors and senior management are from a specific (whatever). How many Sinhalese and Tamils are employed in this so called bank?

according to the linked 2012 AR they have 0.16 EPS and BV of 3.40 rupees. Only an idiot could pay 7 rupees for such crap

Jiggysaurus wrote:This cannot be categorized as a bank, it is more of seetu scheme catering to a specific (whatever) following a (whatever) law.

The CBSL will need to answer why this is being allowed to publicly list. This is a seetu scheme/finance company following an ancient stone age law and catering to a specific (whatever).

Anybody promoting this will need to answer some questions
1) Why is the chairman starting his statement with a religious (whatever) mantharey? Not even BFL or PCH does this in their annual report.
2) Why is a seetu scheme following an ancient barbaric law allowed to raise money from peeple who don't have any knowledge or know the dangers of this law?
3) The employment in this "bank" seems to be based on racism. More than 90% of the directors and senior management are from a specific (whatever). How many Sinhalese and Tamils are employed in this so called bank?

Dear Jiggy... u will never learn i guess.... maybe u shud tell everyone y u have sooo much hatred towards muslims and islam.... about ur research on anti islamic sites coz.... ur ex girl friend... errrm who happens to be muslim dumping u.... and u errrrrrmmm........ maybe i shud stop now....

please don't use ur personal agendas and ruin this forum.... please admins... moderators.... u shud stop such jokers on this forum... as this is not a forum for racial hatred... but to discuss the share market....

Zaiban wrote:

please don't use ur personal agendas and ruin this forum.... please admins... moderators.... u shud stop such jokers on this forum... as this is not a forum for racial hatred... but to discuss the share market....

I'm discussing an IPO that is coming on to the share market.
The problem is that this is a dangerous racist seetu scheme that can suck retailer money. (After the IPO fails, in 2016 someone will come and defend the managers saying they are "god fearing peeples")
There is no personal agenda i'm highlighting a dangerous problem with this IPO. Why don't you answer the 3 questions i've asked instead of the usual cult tactic of changing the subject

Gaudente wrote:according to the linked 2012 AR they have 0.16 EPS and BV of 3.40 rupees. Only an idiot could pay 7 rupees for such crap

The above figures are almost one year back. Probably now they have better ratios, unless they have gone for a share split after 31st Dec. 2012. If NAV has improved to around Rs.5/- offer price of Rs.7/- is reasonable.

Jiggysaurus wrote:This cannot be categorized as a bank, it is more of seetu scheme catering to a specific (whatever) following a (whatever) law.

The CBSL will need to answer why this is being allowed to publicly list. This is a seetu scheme/finance company following an ancient stone age law and catering to a specific (whatever).

Anybody promoting this will need to answer some questions
1) Why is the chairman starting his statement with a religious (whatever) mantharey? Not even BFL or PCH does this in their annual report.
2) Why is a seetu scheme following an ancient barbaric law allowed to raise money from peeple who don't have any knowledge or know the dangers of this law?
3) The employment in this "bank" seems to be based on racism. More than 90% of the directors and senior management are from a specific (whatever). How many Sinhalese and Tamils are employed in this so called bank?

Sorry mate, couldn't find any Sinhalese or Tamil in the shareholder list. But there are some hybrid varieties in the shareholder list.

16. Mr. Mohamed Kali Mudiyanselegedara Seyed Mohamed Rasan 3,500,000 0.4
17. Mr. Rajubudeen Kali Mudiyansalagedara Seyed Mohamed 3,500,000 0.4
18. Mr. Razeek Kali Mudiyanselegedara Seyed Mohamed 3,500,000 0.4

But as this entity is operating on a particular religious concept it's quite normal to have people of that faith as promoters. But after the IPO we may see few guys from other faiths as well.

hariesha wrote:

Gaudente wrote:according to the linked 2012 AR they have 0.16 EPS and BV of 3.40 rupees. Only an idiot could pay 7 rupees for such crap

The above figures are almost one year back. Probably now they have better ratios, unless they have gone for a share split after 31st Dec. 2012. If NAV has improved to around Rs.5/- offer price of Rs.7/- is reasonable.

Further their last rights issue also at Rs.7/-. So after eight months issuing shares at the same price is reasonable providing things not deteriorated in between.

hope it wont be another expo,softlogic,flch,bil????????? be smart guys

hariesha wrote:

Gaudente wrote:according to the linked 2012 AR they have 0.16 EPS and BV of 3.40 rupees. Only an idiot could pay 7 rupees for such crap

The above figures are almost one year back. Probably now they have better ratios, unless they have gone for a share split after 31st Dec. 2012. If NAV has improved to around Rs.5/- offer price of Rs.7/- is reasonable.

I doubt a serious increase in EPS is there for the current year..

Banks are all about PBV multiples.. At an offer price of 7, if NAV is 5, PBV is 1.4 and looks attractive.. Then again, their assets should improve a lot to be closet to 5. The problem is the niche market they operate in.. How much of an improvement are we bargaining for?

On the other hand, we cannot expect any bank to offer a less price either... This is the cheapest bank in offer now.. But still I'm on the fence of their growth.

To me, at 10.20, a financial institute such as COCR is a better bargain than this.. We know their growth and abilities.

Known devil is better than unknown God, I say...

Not to discourage anyone of this IPO - but do ur simple analysis first..

Lets see what our seniors have to say about this too..