Bahrain Clear (BHC), a fully owned subsidiary of Bahrain Bourse, has announced the launch of Bahrain Private Market, a new comprehensive platform for closed shareholding companies.

It aims to provide a full suite of bespoke share registrar services in a secure and electronic format in accordance with issued Law No (09) of 2022 in relation to commercial registration services published in the Official Gazette No (3594).

The services will be provided by Bahrain Clear effective as of August 18, 2022. The shares will be held in safe custody by Bahrain Clear to ensure the safe keeping and visibility to the company’s shareholders. The platform will enable closed shareholding companies to access, connect, manage and execute their transactions in an efficient and effective manner.

Full suite of bespoke services

The Bahrain Private Market will offer a platform that will provide a full suite of bespoke services for closed shareholding companies. These new capabilities will help fulfill an unmet market demand and provide a more transparent and efficient offering for closed shareholding companies, and subseqnetly the respective shareholders.

Bahrain Private Market will offer a range of services for closed shareholding companies with a total annual fee of BD500 ($1,326) which includes change of partners (trading between existing shareholders), authorised signatories, directors, and company type and mergers.

In addition, closed shareholding companies can transfer company ownership, increase/decrease in capital, preform pledging and unpledging transactions, discharge and lifting and judicial custodianship. The platform also provides for additional add-on services such as AGM management services (physical and eAGM), cash dividend distributions, share options, and auction services, eVoting, and consolidated statements.

Evolution of the private markets

Bahrain Bourse’s Chief Executive Officer and Vice Chairman and Managing Director of Bahrain Clear, Shaikh Khalifa Bin Ebrahim Al Khalifa commented: “Today’s announcement highlights our optimism about the evolution of the private markets. At Bahrain Clear, we are utilising our expertise to further support the growth of private market infrastructures and foster innovation. The launch of Bahrain Private Market will provide a more transparent and efficient offering for closed shareholding companies, providing unique opportunities in the private company secondary trading market.”

The platform will serve as a unique one-stop-shop for closed shareholding companies, which aims to provide a range of services and tailored solutions, as well as greater flexibility with the opportunity to trade shares between existing shareholders.

The launch of Bahrain Private Market aims to capitalise on technology-driven operational efficiencies of Bahrain Clear to further expand services to encompass both public and private shareholding companies.

Exchange ecosystem

“Joining Bahrain Private Market aims to prepare closed Shareholding companies to kick-start their journey towards public capital markets and expose them to the overall exchange ecosystem,” Shaikh Khalifa added.

Bahrain Clear has a disclosed capital of BD5 million, and a paid-up capital of BD1 million. Bahrain Clear is licensed by the Central Bank of Bahrain as a ‘Clearing House and Central Depository’ offering post-trade services to investors. Bahrain Clear’s service offering includes related services of securities transactions depository, clearing, settlement, central registry and registration.

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