APM Terminals Bahrain plans to raise around BHD 12m ($32m) through an initial public offering (IPO) in what will be the first such offering in the kingdom by a transport and logistics company.
It will offer 18m shares, equivalent to 20% of its issued share capital, at BHD0.66 per share, with the net proceeds to be paid to its current shareholders pro-rata based on their shareholding.
The offer price of BHD 0.660 per share, equates to a price-to-earnings (P/E) ratio of 5.7x 2017’s net earnings of BHD 10.4m.
APM Terminals currently holds 80% of the shares and the remaining 20% of shares are held by diversified regional business group YBA Kanoo Holdings of Bahrain.
“The public offering of APM Terminals is a proxy on the Kingdom’s growing non-oil economy, it offers investors extremely attractive pricing and a dividend yield of 15.5% on the offer price based on dividends paid in 2017,” said Najla Al Shirawi, chief executive of SICO, the mandated lead manager for the IPO.
The offering will start on 8 November and remain open until 24 November. Some 30% of the shares will be made available to retail investors.
APM Terminals Bahrain has an exclusive 25-year concession from the Bahrain Government to manage and operate Khalifa Bin Salman Port (KBSP).
The concession, which commenced on 1 April 2009, is renewable with mutual consent of the company and the Bahrain Government.
The concession gives APM Terminals Bahrain exclusive rights to manage all of Bahrain’s container traffic and the majority of its general cargo traffic.
