SICO, a leading regional asset manager, broker, and investment bank, has announced the successful closing of the BD9 million ($24 million) initial public offering (IPO) of AlAbraaj Restaurants Group, which was oversubscribed 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 BD23 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). 

 

Professional investors

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. We are proud to have played a pivotal role as lead manager in delivering a successful IPO that provides investors with an opportunity to participate in the growth of the kingdom’s dynamic F&B sector. 

 

“We are also very proud of our investment banking team’s ability to successfully manage the transaction and generate demand on such an accelerated timeline. The results of the transaction are testament to the confidence placed in SICO as a lead manager able to deliver the highest success rates, we would like to extend our utmost appreciation to the subscribers in the IPO and to the Central Bank of Bahrain, Bahrain Bourse and Bahrain Clear on their continuous support and guidance.” 

 

Wissam Haddad, Group Head of Investment Banking at SICO, added: “We are proud to have successfully closed the initial public offer for Al Abraaj, the first family business going public in Bahrain since 2005. 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.  We are also pleased that our eIPO system attracted 50% of the number of applicants to the IPO.” 

 

New chapter

Hamad Rashed Hilal Isa, Chairman of AlAbraaj Restaurants Group, said: "The success of our IPO marks a historic milestone for Al Abraaj, and we are deeply grateful for the trust and confidence our investors have shown. 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. With SICO’s invaluable support, we are prepared to drive long-term value for our shareholders, who have now become part of our family, and to reinforce our position as a leading publicly traded company."

 

Allotment notices will be emailed to investors and will also be available for collection from Bahrain Clear starting from December 12 and any refunds will be distributed on December 15. On December 19, the company’s shares will be listed and will trade on the Bahrain Bourse under the ticker symbol ABRAAJ.  

 

All applicants that have been allocated shares in the IPO are then eligible to trade by opening an account with a Bahrain Bourse registered brokerage if they do not already have one.  Furthermore, applicants allotted shares in the IPO will be eligible to any dividends distributed by the company for the fourth quarter of 2024 (October 1 to December 31, 2024) and thereafter. SICO will provide price stabilisation and liquidity provision services from the start of trading on the Bahrain Bourse.--TradeArabia News Service