Bahrain's Eskan bank REIT IPO exceeds 95% per cent subscription rate

The IPO offered 144,394,499 units of the total 198,000,000 units at offer price of BAD 0.100 units, totaling BAD 14.4 million ($38.2 mln).

  

Manama, Kingdom of Bahrain – 7 December 2016

Eskan Bank and Securities & Investment Company (SICO) announced today the subscription results and allotment basis of the initial public offering (IPO) of the BD 19,800,000 Eskan Bank Realty Income Trust (REIT).  The IPO offered 144,394,499 units of the total 198,000,000 units in issuance at an offer price of BD 0.100 units, totalling BD 14.4 million (US$ 38.2mn).  The IPO opened on 22 November and closed on 6 December 2016.  SICO is the mandated lead manager for the IPO as well as the REIT’s sub-investment manager and market maker.

The IPO achieved a 95.5 % per cent subscription level, with total subscriptions from eligible applicants amounting to BD 13.8 million (US$ 36.6 mn), representing 137,863,559 units at BD 0.100 per unit.

Commenting on the result, Dr. Khalid Abdulla, the General Manager of Eskan Bank, stated: “We note the support the REIT has received from concerned from officials, especially H.E. the Minister of Housing and the Chairman of Eskan Bank Eng. Bassim Bin Yaqoob Al Hamer. His directions and support throughout the REIT’s formation period, the first of its kind in Bahrain, was invaluable. This REIT provides a unique investment opportunity in the Bahraini real estate sector, which shall be managed by a professional team that aims to maximize returns. 

Moreover, Dr. Abdulla added: “subscriptions in the REIT units exceeded our expectations considering the challenging regional economic conditions, we are particularly delighted with the amount of subscription received from the retail investors as they were the prime target of this IPO. We extend our gratitude to investors who have demonstrated their faith in the product. We now look forward to the listing of the REIT’s units on the Bahrain Bourse on 2 January 2017 after which all unit holders can start trading through their appointed broker.”

Ms. Najla M. Al Shirawi, Chief Executive Officer of SICO, said: “We would like to congratulate Eskan Bank on the closing of this landmark IPO, which is all the more significant given the current highly-challenging market conditions. It is particularly pleasing that the unique structuring of the offering, with benefits comprising attractive returns, diversity, liquidity and lower risk, proved to be so popular with retail investors fulfilling the objective of Eskan bank to benefit individual investors.”

The Trust announced that units will be allotted in consultation with the lead manager, according to the allotment basis detailed in the offering prospectus, with eligible applicants being allotted their full subscription amount. Allotment notices will be mailed to applicants by 22 December 2016 to the address specified on the application form.

- Ends -

For more information, please contact:
Nadeen Oweis
Head of Corporate Communications 
Securities & Investment Company (SICO(
Tel : 00973 39016469
Email : Nadeen.oweis@sicobahrain.com
Securities & Investment Company (SICO)

Headquartered in the Kingdom of Bahrain, and with a growing regional presence and international footprint, Securities & Investment Company (SICO) is one of the premier wholesale banks in the GCC region. SICO provides a select range of investment banking solutions – brokerage, market making, treasury, asset management, corporate finance, and custody and fund administration – which are underpinned by an independent, value-added research capability.

Established in 1995, and listed on the Bahrain Bourse in 2003 as a closed company, SICO operates under a conventional wholesale banking licence from the Central Bank of Bahrain. The Bank has two wholly-owned subsidiaries: SICO Fund Services Company (SFS) – a specialised regional custody house; and SICO UAE – an Abu Dhabi-based brokerage firm licensed by the Emirates Securities & Commodities Agency.

The Bank’s strong shareholding base consists of pre-eminent regional financial institutions – Arab Banking Corporation, Ahli United Bank, BBK, Gulf Investment Corporation, Arab Investment Resources Company and National Bank of Bahrain – together with the Social Insurance Organisation of the Kingdom of Bahrain, and the Bank’s staff through the SICO Employee Stock Ownership Plan.

© Press Release 2016


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