APM Terminals (APMT) Bahrain, the only operator at Khalifa bin Salman Port (KBSP) has announced the initial public offering (IPO) of 20% of the company’s total issued share capital, beginning on November 8.
Worth BHD11.8m (US$31m), the offer is comprised of 18m shares of the joint venture between APMT International (80%) and YBA Kanoo Holdings of Bahrain (20%), a regional business group.
Mark Hardiman, CEO/managing director, APMT Bahrain said: “Today is a significant moment for APMT Bahrain as we move forward to launch our IPO, with an opportunity to invest in a successful public-private partnership and Bahrain’s only commercial port.
“Being the only commercial port, KBSP plays a vital role in the economic development of Bahrain by facilitating smooth trade flows, which has been possible with APMT bringing in the required expertise, competitiveness and operational excellence as per international standards.”
The offer shares are priced at BHD0.660 (US$1.8) per share, equating to a price-to-earnings (P/E) ratio of 5.7x 2017’s net earnings of BHD10.4m (US$28m).
Najla Al Shirawi, the CEO of SICO, the mandated lead manager for the IPO, said: “The much-anticipated public offering of APMT is a proxy on the Kingdom’s growing non-oil economy, it offers investors extremely attractive pricing and a dividend yield of 15.5% on the offer price based on dividends paid in 2017.
The IPO will commence on November 8 and will be open until November 24 during which potential investors can submit their applications.
The IPO is structured with 70% of the shares on offer allocated to institutional investors (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).