Bahrain-Based Business Group Launches Major IPO
Bahrain-based Jawad Business Group (JBG) has announced the launch of a major initial public offering (IPO) that will be listed on the Bahrain Stock Exchange (BSE). The IPO is the first of its kind in the region, and will provide the general public with the opportunity to own part of Jawad International Fashion (JIF), a subsidiary of JBG.
10 million shares of JIF will be available to all nationalities starting from 9:00 a.m. (Bahrain time) on December 19, ahead of the company listing on the BSE in January. The share price will be BD1.1 (with a nominal value of BD 0.100) and a minimum subscription of 100 to 100,000 for individuals and 5,000 to 100,000 for institutional investors will be required. The subscription will be open till January 8, and approximately 40 per cent ownership will be offered to private investors.
JIF was incorporated by the Jawad Business Group in mid-2003 to operate several international fashion brands including BHS, Mango, Adams, Shoe City, and Hush Puppies throughout the GCC. JIF currently operates 48 outlets in the GCC region
JIF's Chairman and Chief Executive Officer, Faisal H. Jawad, said, "This IPO represents a major step with both franchising and retail in the GCC. We are eager to open up JIF stock ownership to the public and look forward to further expansion in the region. In line with our corporate strategy, we will work through organic growth to generate returns for our investors."
"As the first retail company in the region offering its shares to the public, it is our hope that we will set the benchmarks for others to follow," he added.
Receiving banks selected for the JIF IPO are Ahli United Bank, Bahrain Islamic Bank, and Standard Chartered. Ahli United Bank branches offering subscription applications are Manama, Exhibition Road, Muharraq, Zinj, Riffa, Sitra, and the Seef Headquarters. Bahrain Islamic Bank branches in the Diplomatic Area and Riffa offer applications, and Standard Chartered branches in Manama and Muharraq round out the list of banks offering subscription and payment options for the IPO.
The IPO share registrar is KPMG Fakhro and Jawad Habib & Co is the IPO allocation registrar. BDO Jawad Habib Public Accountants act as Auditors and BDO Jawad Habib Consulting are the technical and legal advisors. The lead manager and financial advising firm chosen for the IPO is Khaleej Finance and Investment (KFI), a Bahrain-based investment bank.
Upon completion of the JIF IPO, the publicly traded company will be owned 51% by JBG, 9% by Khaleej Fashion Franchises (formed in 2005 by KFI as a closed Bahrain shareholding company), and 40% by members of the public.
In line with JBG's corporate strategy to grow and develop their business units in intervals, they intended to organically grow JIF as an entity and take the steps needed to execute an IPO.
The performance of JIF is well above the service sector average of the Bahrain Stock Exchange and it is JBG's vision to further develop the business units of JIF so as to deliver consistent value to its share holders. It is also the stated policy of JIF to distribute 75% of the net profits every year by way of dividends.
Based on the information provided by Jawad, JIF's strategy revolves around operating the brands in all major malls including Mall of the Emirates, Marina Mall-Abu-Dhabi, Bahrain City Centre, Villagio-Qatar, Festival City-Dubai, Mall of Arabia-Dubai, and Khalidiya Mall, Abu-Dhabi to name a few.
For further information on the public offering, please contact R. Ramakrishnan at Jawad Business Group via telephone at +973 17247153 or via fax at +973 17247104.
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For further information, please contact:
Kristen Ritter
Action Bahrain
TEL: +973 17234553
Email: kristen.r@actionprgroup.com
© Press Release 2005
