Port operator's $31m initial public offering sees oversubscription by 5.4 times the offer size
The successful closing of the BD11.880 million ($31.3 million) initial public offering (IPO) of APM Terminals Bahrain was announced on Monday.
The transaction comprised an offering of 18 million shares but generated total demand of 97.4 million shares or BD64.3 million between both the institutional and retail tranches resulting in an oversubscription by 5.4 times the offer size.
The IPO has been called Bahrain's most successful in a decade.
“The overwhelming response that we received is a strong vote of confidence in the ability of APM Terminals Bahrain to continue to generate value as the exclusive port operator of Bahrain’s Khalifa Bin Salman Port and the resilience of Bahrain’s economy as the Kingdom continues to take serious steps towards the reform and diversification of its economy,” said Najla Al-Shirawi, CEO of SICO, a regional asset manager, broker and investment bank.
“As the mandated lead manager, underwriter, market maker and participating broker for the IPO, SICO has been able to witness first-hand the demand that was received from both inside and outside Bahrain particularly institutional investors from across the GCC.
"The results of the transaction position the APM Terminals IPO as the most successful IPO in Bahrain over the last 10 years,” added Al-Shirawi.
APM Terminals CEO and managing director, Mark Hardiman, said: “We are very encouraged by the public support we have received for our IPO which reflects strong investor belief in the company and recognises this unique opportunity of investing in Bahrain’s only commercial port."
Allotment notices and refunds will be distributed on November 29 and December 3, respectively and APM Terminals Bahrain will start trading on the Bahrain Bourse on December 9.For all the latest market 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.