APM Terminals Bahrain, the exclusive operator of Bahrain’s Khalifa Bin Salman Port (KBSP), said its BD11.880 million ($31.58 million) IPO was met with strong demand from local and regional institutions and retail investors.
The demand resulted in an oversubscribed offer with funded applications totalling 6.8 times the institutional offer size and 2.2 times the retail offer size, said a statement from SICO, a leading regional asset manager, broker and investment bank.
The overall oversubscription resulted in funded applications of 5.4 times the offer size. These results reflect the provisional reconciliation of the data related to the application forms received, it said.
The transaction comprised an offering of 18,000,000 shares 70 per cent of which were allocated to institutional investors (that is, those applying for over 100,000 shares) while 30 per cent of the shares have been allocated to retail investors (that is, those applying for up to 100,000 shares).
The IPO generated total demand for 97.4 million shares or BD64.3 million ($170.93 million) between both the institutional and retail tranches resulting in an oversubscription from funded applications 5.4 times the offer size.
A total applications for 85.6 million shares, which translates into BD56.5 million ($150.19 million), was received through the institutional tranche, while the retail tranche received applications for a total of 11.8 million shares, which translates into BD7.8 million ($20.73 million).
The retail tranche will be allotted a number of shares that may be less than the initial minimum retail allocation up to (15,000 shares) for retail applicants of 15,000 shares or less (as further detailed in the IPO prospectus registered with the CBB on October 29).
Najla Al Shirawi, chief executive officer, SICO, said: “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.
APM Terminals Bahrain chief executive officer 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.”
APM Terminals Bahrain will start trading on the Bahrain Bourse on December 9, under the symbol APMTB. SICO will provide price stabilisation and market making services for APM Terminals Bahrain from the start of trading.
