Kuwait’s Zain aims to raise BD9.12m (US$24.19m) from the sale of a 15% interest in its Bahraini mobile unit on the local bourse in September.
Zain Bahrain said in a statement that the company will offer BD0.19 (US$0.50) per share for 48 million new…
Kuwait’s Zain aims to raise BD9.12m (US$24.19m) from the sale of a 15% interest in its Bahraini mobile unit on the local bourse in September.
Zain Bahrain said in a statement that the company will offer BD0.19 (US$0.50) per share for 48 million new ordinary shares.
The price represents a 90% premium over the nominal value and values the entire company at BD69.92m (US$185.45m).
The offer, which runs from 2 to 16 September, is open to both institutional and retail investors in the Kingdom of Bahrain and to institutional investors in the wider Gulf region.
Results of the subscription and confirmation of the basis of allotment are set to be announced on 18 September. The company aims to begin trading the shares on the stock exchange as soon as possible after the subscription closes.
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.
Up to 98% of the proceeds from the offering will be used to upgrade Zain Bahrain’s network infrastructure to improve outdoor coverage, meet high bandwidth demands and introduce new features for smartphones. The remaining proceeds will be used to expand the company’s 4G service nationwide, as well as for general corporate purposes.
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, the Kuwaiti parent company paid US$12.5m to boost its stake in Zain Bahrain by 6.25% to 62.5%, allowing it to retain a controlling stake in the unit 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.
