No U.K. Takers For Debut Of Islamic Bank IPO

Sinking stock markets in the Gulf region and elsewhere in the Middle East are being blamed for the failure of an Islamic bank’s initial public offering to attract a single U.K. investor, The Times of London reports.

Sinking stock markets in the Gulf region and elsewhere in the Middle East are being blamed for the failure of an Islamic bank’s initial public offering to attract a single U.K. investor, The Times of London reports. According to the paper, shares of European Islamic Investment Bank, the U.K.’s first Shariah compliant bank, dropped 38% on the first day of the IPO.

“I am not sure how strong investor appetite for Islamic banking is in the developed world,” Mark Young, an analyst at Fitch Ratings told The Times. “There is limited understanding of its product and of its potential.” In addition to the market problems in the region, the paper notes, observers say shares of EIIB were priced too high.