Kuwaiti mobile operator Zain has raised an expected BD9.12m (US$24.12m) from the sale of a 15% stake in its Bahraini unit on the local bourse, with 34.8% of offered shares going to retail and institutional subscribers.
These subscribers will pay BD0.19…
Kuwaiti mobile operator Zain has raised an expected BD9.12m (US$24.12m) from the sale of a 15% stake in its Bahraini unit on the local bourse, with 34.8% of offered shares going to retail and institutional subscribers.
These subscribers will pay BD0.19 (US$0.50) per share for about 16.71 million of the 48 million shares on offer, Zain Bahrain and Gulf International Bank (GIB), the lead manager on the transaction, said in a statement.
The remaining 31.29 million shares, equal to a 65.2% stake, will be allotted to GIB. The BD0.19 per share price tag values the Bahraini mobile operator at BD69.92m (US$185.45m).
Last month, Zain Bahrain extended the subscription period for the offering, which was open to investors in Bahrain and the wider Gulf region, by two weeks to 30 September.
Shares are set to be allotted on 9 October. The commencement of trading date is yet to be announced.
Watani Investment Company, trading as NBK Capital, is the co-manager for the offering. Joint financial advisers and bookrunners are GIB and NBK Capital. 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.