AlAbraaj Restaurants Group announces provisional results, allotment basis of IPO

TDT | Manama

Email: mail@newsofbahrain.com

SICO, a leading regional asset manager, broker, and investment bank, announced yesterday the successful closing of the BHD 9 million initial public offering of AlAbraaj Restaurants Group, which was oversubscribed by 2.6 times. These results reflect the provisional reconciliation of the data related to the application forms received.

The transaction comprised an offering of 38,181,818 shares at BD 0.236 per share representing 35% of the company’s total issued post-IPO share capital. The IPO generated total demand of over 99 million shares or over BD 23 million between both the professional and retail tranches.

The IPO is structured with 70% of the shares on offer allocated to professional investors (i.e., those applying for 1.5 million shares or more), while 30% of the shares have been allocated to retail investors (i.e., those applying for less than 1.5 million shares). Applications for professional investors represented over 300% of the shares earmarked for this category, and applications for retail investors represented over 130% of the shares in the retail category. As a number of professional investors exceeded the maximum allocation possible of 10% of the offer size, their bid will be reduced to such limit and the excess will be allocated to the retail category, allowing for a full allocation of retail investors. Professional investors will be allotted shares as determined by the lead manager.

Najla Al Shirawi, Group CEO of SICO, stated, “The strong response to AlAbraaj Restaurants Group’s IPO is a testament to the appeal of Al Abraaj’s unique value proposition.”

Wissam Haddad, Group Head of Investment Banking at SICO, added, “Going public provides businesses with advantages including another currency to execute acquisitions through share swaps, wider access to capital, solid transparency and governance, and liquidity for shareholders.”

Hamad Rashed Hilal Isa, Chairman of AlAbraaj Restaurants Group, said, "This achievement opens an exciting new chapter, enabling us to accelerate our regional expansion, enhance our brand portfolio, and create innovative dining experiences for a broader audience." Allotment notices will be emailed to investors and will also be available for collection from Bahrain Clear starting from 12 December and any refunds will be distributed on 15 December. On 19 December, the company’s shares will be listed and will trade on the Bahrain Bourse under the ticker symbol ABRAAJ.