Manama, Bahrain  - The Central Bank of Bahrain (CBB) has instructed Ithmaar Bank to postpone the hugely anticipated initial public offering (IPO) of real-estate developer Naseej, it has emerged on Tuesday.

The decision by the CBB, citing current market conditions as the reason behind its assessment, comes just over two weeks before the planned 18 November IPO launch date. Ithmaar Bank had been acting as the lead manager of the offering.

Chairman of Ithmaar Bank, Khalid Abdulla Janahi, announced plans two weeks ago to introduce the IPO, the largest to date to be launched from Bahrain, during a meeting of major Naseej shareholders.

The announcement was based on the fact that the underwriters had chosen to guarantee the full issue.

Janahi said in a statement that he did not expect an extended delay.

The establishment of Naseej is seen as the response of Bahrain's private sector to address the Gulf island's pressing affordable housing needs.

The key investors in the project come from within Bahrain's Islamic banking sector, an area of finance thus-far less affected by the current financial turmoil as the traditional investment and banking institutions. (dpa)