APM Terminals Bahrain’s BHD 11.880 million IPO was met with strong demand from local and regional institutions and retail investors alike, resulting in an oversubscribed offer with funded applications totaling 6.8 X the institutional offer size and 2.2 X the retail offer size. An overall oversubscription resulted from funded applications 5.4 X the offer size. These results reflect the provisional reconciliation of the data related to the application forms received.
Manama, Kingdom of Bahrain: SICO BSC (c), a leading regional asset manager, broker and investment bank (licensed as a conventional wholesale bank by the Central Bank of Bahrain (“CBB”), announced today the successful closing of the BHD 11.880 million initial public offering (“IPO”) of APM Terminals Bahrain.
The transaction comprised an offering of 18,000,000 shares 70% of which were allocated to institutional investors (i.e., those applying for over 100,000 shares) while 30% of the shares have been allocated to retail investors (i.e., those applying for up to 100,000 shares). The IPO generated total demand of 97.4 million shares or BHD 64.3 million between both the institutional and retail tranches resulting in an oversubscription from funded applications 5.4 X the offer size. A total applications for 85.6 million shares, which translates into BHD 56.5 million, was received through the institutional tranche, while the retail tranche received applications for a total of 11.8 million shares, which translates into BHD 7.8 million.
Funded applications received totaled 6.8 X the offer size pertaining to the institutional tranche to be allotted on a pro rata basis. Furthermore, the offer also resulted in an oversubscription pertaining to the retail tranche, having received funded applications totaling 2.2 X the offer size. The retail tranche will be allotted a number of shares that may be less than the initial minimum retail allocation up to (15,000 shares) for retail applicants of (15,000 shares) or less (as further detailed in the IPO prospectus registered with the CBB on 29 October 2018).
“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.
“As the mandated lead manager, underwriter, market maker and participating broker for the IPO, SICO has been able to witness first-hand the demand that was received from both inside and outside Bahrain particularly institutional investors from across the GCC. 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 position the APM Terminals IPO as the most successful IPO in Bahrain over the last 10 years and is 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 Central Bank of Bahrain, Bahrain Bourse and Bahrain Clear on their continuous support and guidance ” added Al-Shirawi.
Commenting on the IPO, APM Terminals CEO and Managing Director, Mark Hardiman said, “We are very encouraged by the public support we have received for our IPO which reflects strong investor belief in the company and recognizes this unique opportunity of investing in Bahrain’s only commercial port. We are delighted to welcome our 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.”
“We would also like to acknowledge the role played by SICO, our lead partner, and other key partners for managing our IPO journey in an efficient manner with their continuous support and guidance. We look forward to taking on our new corporate role as a public-listed entity,” added further Hardiman.
Bahrain Clear’s Vice Chairman & Managing Director, Sh. Khalifa bin Ebrahim Al Khalifa commented, “We are pleased with the oversubscription results of the APM Terminals Bahrain IPO which positively reflects investors’ confidence and cements Bahrain Clear’s role as a Clearing House offering value-added services covering both pre and post-listing, which comes in line with Bahrain Clear’s objective of enhancing and developing services provided to investors and issuers alike.”
Allotment notices and refunds will be distributed on November 29 and December 3, 2018 and APM Terminals Bahrain will start trading on the Bahrain Bourse on December 9, 2018 under the symbol APMTB. SICO will provide price stabilization and market making services for APM Terminals Bahrain from the start of trading.
Following the successful public offering, the ownership structure of APM Terminals Bahrain is as follows: APM Terminals BV (64%), YBA Kanoo Holdings of Bahrain (16%), and IPO applicants (20%). APM Terminals BV is the company which operates a global network of 74 operating ports and terminal facilities and over 117 Inland Services operations spread over 58 countries, is part of the A.P Moller – Maersk group, a global business headquartered in Copenhagen, Denmark, with activities in the transport and logistics which includes the biggest container ship operator in the world.
SICO is a leading regional asset manager, broker, and investment bank, with more than USD 1.9 bn in assets under management (AUM). Today SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees two wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage and a specialised regional custody house, SICO Fund Services Company (SFS). Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region’s major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank’s continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 100 exceptional employees.
© Press Release 2018