Bahrain's Mumtalakat to float Alba stake in IPO

Sovereign wealth fund plans to float up to 11.47% in IPO planned later this year
Bahrain's Mumtalakat to float Alba stake in IPO
Bahrains sovereign wealth fund Mumtalakat owns 77 percent of Alba, with SABIC owning a minority stake
By Reuters
Tue 05 Oct 2010 02:11 PM

Bahrain's sovereign wealth fund Mumtalakat plans to float up to 11.47 percent in Aluminium Bahrain (Alba) in an initial public offering (IPO) planned for later this year.

Alba said on Tuesday Mumtalakat will sell up to 163 million ordinary shares in the firm. An Alba spokesman said the company had 1.42 billion shares outstanding.

Mumtalakat owns 77 percent of Alba, with Saudi Basic Industries (SABIC) holding a minority stake.

Alba confirmed it had appointed JP Morgan as bookrunner and lead manager for the IPO. Bahrain-based Gulf International Bank (GIB) will act as regional lead manager and Citigroup as co-manager.

The ordinary shares would be listed on the Bahrain Stock Exchange while its global depository receipts would be listed on the London Stock Exchange, it said in a statement.

Alba Chairman Mahmood Hashim Al Kooheji told Reuters last month the firm planned an IPO this year.

Mumtalakat, which bundles Bahrain's non-oil state-owned companies, is one of the smaller sovereign wealth funds in the world's top oil-exporting region, with $9.1bn in assets at the end of 2009.

The fund, which also owns Bahrain's national carrier Gulf Air, plans to divest some of its local holdings and diversify its portfolio to more international and more liquid assets.

Alba, which operates an aluminium smelter in Bahrain, posted a full-year net loss of $220.7m in 2009, compared with a profit of $781.9m the year before, due to lower aluminium prices, according to a Mumtalakat investor presentation from June. (Reuters)

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.