Brunei's Bank Islam will list on the Malaysian bourse. Photo: iStock

Brunei’s largest lender, Bank Islam Brunei Darussalam, aims to raise as much as US$500 million in an initial public offering (IPO) – the first by a firm from the Southeast Asian nation although the bank will be listed on the Malaysian bourse, IFR reported.

JPMorgan and Malayan Banking (Maybank) are set to be joint global coordinators for an initial public offering of US$200 million to US$500 million this year, said IFR, a Thomson Reuters publication. A bookrunner is also likely to be added, it said.

A banking source told Reuters the IPO is expected to raise around US$300 million, but the final amount will depend on the size of the greenshoe option.

Bank Islam did not immediately reply to a Reuters request for comment. Representatives for JPMorgan and Maybank were not immediately available for comment.

The bank was formed through the merger of Islamic Bank of Brunei and Islamic Development Bank of Brunei in 2005. It counts the federal Ministry of Finance, Sultan Haji Hassanal Bolkiah Foundation and Fajr Capital as its shareholders.

Brunei, one of the world’s richest countries on a per capital basis, did not have a stock exchange although its central bank last year announced draft rules to form one, IFR said.