Zain Bahrain, the subsidiary of Kuwait-based telco group Zain, will list 15% of its shares.
The cabinet of the kingdom recently decided in favour of an IPO.
Asked if Zain actually wanted to partially float its subsidiary or if it was ordered by the…
Zain Bahrain, the subsidiary of Kuwait-based telco group Zain, will list 15% of its shares.
The cabinet of the kingdom recently decided in favour of an IPO.
Asked if Zain actually wanted to partially float its subsidiary or if it was ordered by the government to do so, a company source described the development as “a bit of both”.
The source noted that “Zain is obliged, under the terms of its licence, to pursue an IPO, and has been keen to push ahead at some point. At the same time, the cabinet wants the IPO to be launched, as a way of generating activity in the stock market.”
Local media quoted Zain Bahrain chairman Shaikh Ahmed bin Ali Abdulla Al Khalifa welcoming the prospect of a listing. “The cabinet decision is also a signal that the time is right for an IPO and the market is ready,” he said.
According to Zain’s Q4/2012 presentation the Bahrain operations contribute around 5% to the parent’s revenues. Zain reported a turnover of KWD1.28bn (US$4.58bn) for 2012, and EBITDA of KWD670.7m (US$2.04bn), and net income of KWD252.1m (US$902m).
