APM IPO termed ‘most successful’ in a decade

The BD11.880 million initial public offering (IPO) of APM Terminals Bahrain, which according to SICO oversubscribed 5.4 times the offer size, has been closed successfully. The transaction, termed by SICO as “the most successful IPO in Bahrain over the last 10 years”, comprised of an offering of 18,000,000 shares, but generated a total demand of 97.4 million shares or BD64.3 million between both the institutional and retail tranches resulting in an oversubscription from funded applications 5.4 times the offer size. Institutional investors received 70pc of the total shares, while 30pc of the shares were allocated to retail investors.

According to SICO, the mandated lead manager, underwriter, market maker and participating broker, total applications for 85.6 million shares, which translates into BD56.5 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. “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 SICO CEO, Najla Al-Shirawi.

Expressing his delight at the overwhelming response, APM Terminals CEO and Managing Director, Mark Hardiman welcomed corporate and retail investors from Bahrain and across the region to be a part of the APM Terminals Bahrain family, and support the Kingdom’s potential economic development. Bahrain Clear’s Vice Chairman & Managing Director, Shaikh Khalifa bin Ebrahim Al Khalifa commented, “We are pleased with the oversubscription results of the APM Terminals Bahrain IPO which positively reflects investors’ confidence.” Allotment notices and refunds will be distributed on 3 December 2018 and APM Terminals Bahrain will start trading on the Bahrain Bourse on 9 December 2018 under the symbol APMTB.