Tuesday, Nov 09, 2010
(This item was originally published Monday.)
DUBAI (Zawya Dow Jones)--Mumtalakat Holding Co., Bahrain's sovereign wealth fund, Monday announced the final offer price in the initial public offering of Aluminium Bahrain, or Alba, in which it is the major shareholder.
Mumtalakat said, in an emailed statement, the price was set at 0.900 Bahraini dinars ($2.39) per ordinary share and at $11.97 per global depository receipts, or GDR, representing five ordinary shares. The final price was determined through a bookbuilding process, the fund added.
"10% of the ordinary shares of Alba, amounting to 142,000,000 ordinary shares, in the form of 69,018,875 ordinary shares and 14,596,225 GDRs, were offered by Mumtalakat," the fund said. "There will be no over-allotment in connection with the offering."
Of the total deal size, 75% was allocated in the form of ordinary shares and GDRs in the institutional offering, while 25% was allocated in the form of ordinary shares in the retail offering, Mumtalakat said, adding that after the offering it will hold 69.38% of Alba.
"The IPO has successfully helped to attract foreign direct investment into Bahrain and raised the profiles of Bahrain and Alba in the international markets. The proceeds will support Mumtalakat in driving forward its strategy to help grow the wealth of Bahrain and drive value creation in the strategic non-oil and gas related assets of Bahrain," Mumtalakat Chief Executive Officer Talal Al Zain said in the statement.
The final allotment of ordinary shares is expected to be announced around Nov. 12.
Alba, established in 1968, is majority owned by Mumtalakat, with Saudi petrochemical giant Saudi Basic Industries Corp., better known as Sabic, also holding a stake. Mumtalakat is the holding vehicle for a number of companies based in Bahrain, with assets also including Gulf Air and the Bahrain International Circuit.
J.P. Morgan Securities Ltd. has been appointed to act as sole global coordinator and sole bookrunner of the offering, and lead manager of the offering of GDRs. Gulf International Bank has been appointed as regional lead manager of the offering, while the underwriters of the offering of ordinary shares are National Bank of Bahrain, Gulf International Bank, Bahrain Islamic Bank and Al Salam Bank-Bahrain, according to the statement.
The receiving banks in Bahrain were Standard Chartered Bank--the lead receiving bank, Ahli United Bank, Al Baraka Islamic Bank, Al Salam Bank-Bahrain and Bahrain Islamic Bank. In Oman, the receiving banks were Standard Chartered Bank, Ahli Bank and Bank Sohar. In the U.A.E. the receiving banks were Standard Chartered Bank, Abu Dhabi Commercial Bank and Noor Islamic Bank, Mumtalakat said.
-By Dubai Bureau, Dow Jones Newswires; +9714 446-1686; djnews.dubai@dowjones.com
Copyright (c) 2010 Dow Jones & Co.
(END) Dow Jones Newswires
09-11-10 0350GMT
