LONDON - Arab Banking Corporation (B.S.C.), commonly known as Bank ABC, has announced the initiation of a pre-stabilization period for its perpetual non-call 5-year Additional Tier 1 Capital Securities, which will be listed on the International Securities Market of the London Stock Exchange (LON:LSEG) plc. The announcement, made today, indicates that the stabilization efforts will be coordinated by J.P. Morgan Securities PLC.
The aggregate nominal amount of the offering is described as a USD Benchmark, with the offer price yet to be confirmed. The stabilization period commenced today and is expected to last until no later than February 16, 2025. During this time, J.P. Morgan Securities PLC, alongside other stabilization managers including Bank ABC, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Kamco Invest, Mashreq, and Standard Chartered (OTC:SCBFF), may engage in transactions to support the market price of the securities.
The stabilization managers have the ability to over-allot the securities by up to 5% of the aggregate nominal amount. This over-allotment is a common practice intended to manage price volatility and support the market price of the securities post-issuance. The transactions may occur over the counter, with the exact trading venue to be confirmed.
It is noted that stabilization activities may not necessarily take place and can end at any time within the specified period. The announcement clarifies that any stabilization action is aimed at supporting the market price of the securities above the levels that might otherwise prevail in the open market.
The release emphasizes that the information provided does not constitute an offer to underwrite, subscribe for, or otherwise acquire or dispose of any securities and is directed only at persons with professional investment experience and high net worth individuals in the United Kingdom (TADAWUL:4280), as well as qualified investors in the European Economic Area.
The securities mentioned have not been registered under the United States Securities Act of 1933 and, therefore, may not be offered or sold within the United States absent registration or an exemption from registration. There will be no public offering of these securities in the United States.
This announcement is based on a press release statement and is intended to inform market participants and the public about the details of the pre-stabilization period and the potential stabilization activities related to Bank ABC's securities offering.
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