Bahrain's Baraka says Syria unit IPO oversubscribed

MANAMA, Nov 2 (Reuters) - Bahrain's largest Islamic lender Al Baraka BARKA.BH said on Monday the initial public offering (IPO) of its Syrian unit has been oversubscribed.

"We have already 150 percent, and I anticipate we will close at around 200 percent," Chief Executive Adnan Yousif told Reuters.

The subscription period for the IPO -- open only to Syrians -- ends Nov. 4. Bank Bemo Saudi Fransi is managing the sale.

The bank is targeting some $38 million for a 35 percent stake in the unit, in which Al Baraka owns 24 percent and Emirates Islamic Bank holds 10 percent.

The Syrian government is trying to encourage IPOs after the launch of the Damascus Securities Exchange in March. There are 11 companies listed on the exchange, which was launched under government plans to cautiously liberalise the economy.

Syria places restrictions on foreign investors stakes in local firms and on the repatriation of foreign capital.

Al Baraka's IPO is the second by a Gulf Arab bank after Qatar National Bank QNBK.QA (QNB) floated its Syrian unit in July. (Click on [ID:nISLAMIC] for more Islamic finance stories and ISLAMIC for a speed guide)

(Reporting by Frederik Richter; Editing by Inal Ersan)