Islamic Investor: Islamic Investor: - Islamic Finance News

CASE STUDY
Presentation of plaques to the members of the Due Diligence Working Group for the APFT Berhad listing
number of proposals involving IPOs, signifi cant acquisitions
or regularization plans by fi nancially distressed companies
and cash companies. Meeting this requirement did not pose
much of a challenge, as from the outset Bank Islam has always
recognized the importance of hiring experienced talent in order
to be able to offer service quality of the highest level.
With the requisite team in place, Bank Islam was successfully
admitted to the SCM’s inaugural approved list of Principal
Advisers in August 2009. Currently, Bank Islam is the only
Islamic commercial bank to have gained admission to this
approved list.
Implementing key internal processes…
Having the right team was just the beginning. Internal policies
and processes then had to be formulated and implemented
to guide and govern the activities of the corporate fi nance
department.
within the corporate fi nance department to ensure clear and
proper segregation of duties and information from other
departments/divisions in order to maintain the confi dentiality
of sensitive information.
(iv) Underwriting — Any proposed underwriting of IPOs
(as was the case for APFT) are subject to thorough due
diligence and risk assessment prior to submission to the
relevant committees of Bank Islam for approval.
First IPO a success…
To date, APFT is the only listed company in the region providing
fl ight education and training services. Bank Islam was the
managing underwriter, underwriter and placement agent for
APFT’s IPO. Applications for APFT shares by the Malaysian
public at an issue price of RM0.50 (US$0.17) per share were
oversubscribed by 12.09 times. As at the 24 th August 2011, the
price of APFT shares stood at RM0.70 (US$0.24).
(i) Shariah compliance — One of the key processes is to
ensure the client is Shariah compliant, primarily in terms
of activities and income generation. For Bank Islam’s IPO
clients, the corporate fi nance department applies a standard
set of criteria laid out by the Shariah Advisory Council of the
SCM to determine Shariah compliant status. Prior to the
submission of any application to the SCM, the approval of
Bank Islam’s own Shariah Advisory Council is also sought to
confi rm that the IPO client is Shariah compliant. Ultimately,
fi nal confi rmation of an IPO company’s Shariah compliant
status will come from the SCM’s Shariah Advisory Council.
(ii) Regulatory framework — All corporate fi nance personnel
must be familiar with and conduct their activities in
accordance to the current regulations released by the
regulatory authorities which govern the corporate fi nance
department’s activities.
(iii) Chinese wall — Policies and procedures must be in place
From left to right: APFT directors Suhaimi Abdul Ghani, Mohd Khalid
Ali, Faruk Othman, Bank Islam managing director, Zukri Samat and
APFT director Tony Tan Nyap Keong at the launch of its prospectus.
September 2011 19