Bahrain’ s Mumtalakat seeks $540m in Alba IPO

MANAMA: Bahrain’s sovereign wealth fund Mumtalakat announced on Sunday the launch of its maiden IPO for Aluminium Bahrain (Alba) through which it plans to raise 204 million Bahraini dinars ($540 million).The IPO launch was announced by Talal Al Zain, chief executive officer of Mumtalakat, who said that the IPO proceeds would be invested by Mumtalakat to widen and support its strategic asset base.Mahmood Al Kooheji, Chairman of Alba, said at the IPO launch press conference that the simultaneous listings of Alba shares on the Bahrain and London bourses, shows the company’s strict adherence to the highest transparency and corporate governance norms.Alba, which yielded strong half-yearly profits of $200 million, is 21 percent owned by Saudi Basic Industries Corp. (SABIC).The offering will be by Mumtalakat as the selling shareholder, for up to 163.3 million ordinary shares, representing up to 11.5 percent of the company’s total issued, fully paid and outstanding share capital, in the form of ordinary shares listed on the Bahrain Stock Exchange and global depositary receipts (GDRs) listed on the London Stock Exchange.The offer period for ordinary shares opens on Oct. 24, 2010 and closes on Nov. 4, 2010. The Initial Offering Price for general retail investors is 1.250 Bahraini dinar per ordinary share. Bahraini citizens will enjoy a 10 percent discount when purchasing between 100 and 2,000 ordinary shares.

The price range for institutional investors has been set between 0.900 Bahraini dinar to 1.250 Bahraini dinar per ordinary share, and $11.97 — $16.62 per global depositary receipts (GDR), each GDR will represent five ordinary shares.The final offering price will be announced on Nov. 8, 2010 on the basis of the institutional book-building process. If the final offering price is lower than the Initial Offering Price, retail investors will have the option to receive a cash refund or additional shares. “Mumtalakat was set up to help grow the wealth of Bahrain and drive value creation in the strategic nonoil and gas related assets of Bahrain, and this process supports those aims,” said Al Zain.

“The offering is aligned with Bahrain’s Economic Vision 2030 to grow the wealth of Bahrain and to attract Foreign Direct Investment into the Kingdom.“The listing on both the London and Bahrain Stock Exchanges will raise Bahrain and Alba’s profiles in the international markets and illustrates the progress Bahrain is making as a productive, globally competitive economy. Furthermore the Alba listing shows Mumtalakat’s commitment to transparency and best practice corporate governance standards for us and all of our portfolio companies.”“I would like to pay tribute to the Kingdom of Bahrain’s wise leadership and the Kingdom of Saudi Arabia’s continuous support to Alba. Alba is a flagship business for Bahrain and has a positive outlook going forward, given its strong operational track record. I also thank all of Alba’s employees for the commitment and high standards that they have achieved for the company,” said Al Kooheji.

“This is an exciting time for both Alba and Mumtalakat and we are very pleased that this IPO is being undertaken, helping support the government’s aim of achieving a better life for every Bahraini,” said Shaikh Mohammed bin Essa Al Khalifa, Chief Executive of the Bahrain Economic Development Board.J.P. Morgan Securities Ltd. has been appointed to act as sole global coordinator and sole book runner of the offer and lead manager of the offering of GDRs. GIB has been appointed as Regional Lead Manager of the Offer. Citigroup Global Markets Limited has been appointed co-manager of the offering of the GDRs. The Underwriters are GIB, Bahrain Islamic Bank, National Bank of Bahrain and Al Salam Bank-Bahrain – Arabnews