Zain Bahrain has extended the subscription period for its IPO by two weeks to 30 September.
The mobile operator, a unit of Kuwait’s Zain, said in a statement that the subscription period, which began on 2 September, shall not be extended any further,…
Zain Bahrain has extended the subscription period for its IPO by two weeks to 30 September.
The mobile operator, a unit of Kuwait’s Zain, said in a statement that the subscription period, which began on 2 September, shall not be extended any further, adding that all relevant agreements will remain in force.
No reason was given for the extension.
The results of the subscription process are now set to be announced on 2 October, while the allotment date is scheduled for 9 October. The commencement of trading date is yet to be announced.
Zain aims to raise BD9.12m (US$24.19m) from the sale of a 15% stake in the Bahraini unit on the local bourse.
Last month, Zain Bahrain said the company would offer BD0.19 (US$0.50) per share for 48 million new ordinary shares. This values the mobile operator at BD69.92m (US$185.45m).
The offer is open to both institutional and retail investors in the Kingdom of Bahrain and to institutional investors in the wider Gulf region.
Gulf International Bank is the lead manager for the IPO, while Watani Investment Company, trading as NBK Capital, is co-manager. Joint financial advisers and bookrunners are GIB and NBK Capital, while GIB is also the underwriter. Deloitte & Touche Middle East is acting as auditor, while Trowers & Hamlins and Zu’bi & Partners are legal advisers.
In 2013, Zain missed a deadline to float 15% of the unit within a decade of obtaining a licence, as per local requirements. The company finally launched the process earlier this year by submitting a listing request to Bahrain’s ministry of industry and commerce.
In May, Zain paid US$12.5m to boost its stake in the Bahraini unit by 6.25% to 62.5%, allowing it to retain a controlling stake once it is listed.
Zain Bahrain claims to be the second-largest player in the country. Its competitors are Batelco and Viva.
Zain is also planning to list its Iraqi mobile unit and has mandated Melak Investments to lead the IPO.
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