The bank, which only received authorisation from the Financial Services Authority in August, was hoping to raise £40 million during September and has attracted substantially more, says book-runner, broker Keith Bayley Rogers.

Following the offer, the company plans to float on AIM in mid-October. The money will help expand the branch network, provide an internet facility for customers and develop new products. The bank is the first stand-alone UK entity to offer wholly Sharia’a compliant retail products and aims to cater for Britain’s 1.8 million Muslims.

The bank was set up last year with £14 million of initial capital put up by investors in the Gulf. At the same time managing director Michael Hanlon, who spent 34 years at Barclays, was recruited. Grant Thornton will be nominated adviser.