Manama: Al Abraaj Restaurants Group, a prominent entity in Bahrain’s restaurant sector, has announced its initial public offering (IPO) of 38 million shares, representing 35 per cent of its total issued share capital post-IPO.
Priced at 236 fils per share, this offering is poised to generate approximately 9 million Bahrain dinars (around $23.91 million). The strategic move marks a significant milestone in the company’s evolution since its inception in 1987, reflecting its commitment to growth and innovation in the food and beverage industry.
The IPO allocation is designed to cater to a diverse investor base, with 70 per cent of the shares reserved for professional investors—those applying for over 1.5 million shares—and 30 per cent allocated to retail investors, who may apply for smaller quantities.
The offer period will commence on November 24 and conclude on December 8, 2024, providing a window for interested parties to engage in this lucrative opportunity.
Expanding footprint
Hamad Rashed Isa, Chairman of Al Abraaj Restaurants Group, said the company’s enduring dedication to quality and customer experience.
He articulated the IPO’s significance as a strategic decision aimed at capitalising on expanding regional markets, thereby enhancing the company’s operational footprint and service offerings. The group is renowned for its diverse portfolio of dining experiences, which includes celebrated brands such as Al Abraaj, Bindaira, and NuAsia, among others.
Wissam Haddad, Group Head of Investment Banking at SICO, the lead manager for the IPO, highlighted the attractive investment proposition, noting an expected annual dividend yield of 8 per cent on the offer price, translating to over 18 per cent on the shares’ nominal value.
The initiative also introduces quarterly dividend distributions, a pioneering feature on the Bahrain Bourse, and prioritises retail investors with a potential allocation of up to BD20,000.
The IPO process is streamlined through SICO’s eipo portal and Khaleeji Bank branches, ensuring accessibility for all investors. Following the listing on December 19, 2024, under the ticker symbol ABRAAJ, shareholders will be eligible for dividends starting from the fourth quarter of that year.
