AlAbraaj Restaurants Group officially debuted its shares on Bahrain Bourse (BHB) yesterday, marking an historic moment as the first homegrown restaurant chain to go public in the kingdom.
A bell-ringing ceremony was held to commemorate the commencement of trading, attended by key figures including BHB chief executive Shaikh Khalifa bin Ebrahim Al Khalifa and AlAbraaj Restaurants Group chairman Hamad Rashed Isa.
Shaikh Khalifa expressed enthusiasm for the listing, highlighting AlAbraaj Restaurants Group’s strong track record and its potential to contribute to the market’s growth. “The strong demand for the IPO reflects investor confidence in Bahrain Bourse and underscores our commitment to fostering a dynamic and vibrant market,” he stated. “It also reinforces the kingdom’s commitment to economic diversification, positioning the capital markets as a key driver of sustainable growth and development, and paves the way for companies from various sectors to explore the benefits of listing.”
The listing follows an Initial Public Offering (IPO), where 38,181,818 shares were offered at a price of BD0.236 per share, representing 35 per cent of the company’s total issued post-IPO share capital. The IPO was met with strong retail and professional demand, resulting in an oversubscribed offer of 2.6 times.
Mr Isa expressed pride in the company’s journey and its successful listing. “Today is a monumental day for everyone who has been part of this journey over the past 37 years. As we celebrate the official listing of AlAbraaj on Bahrain Bourse, I am filled with immense pride and gratitude. We will continue upholding our values, the trust of our customers, the dedication of our employees, and our unwavering belief in our potential for growth,” he added.
Najla Al Shirawi, group chief executive of SICO, the lead manager of the IPO, commented on the overwhelming demand from both retail and institutional investors. “This underscores the exceptional appeal of high-quality opportunities in the F&B sector and highlights the strength of Al Abraaj’s robust business model and promising growth trajectory. The offering’s compelling valuation provided investors with a unique opportunity for potential capital appreciation and consistent income through dividend payouts,” she said.
AlAbraaj Restaurants Group will trade under the symbol ‘ABRAAJ’ in the IPO market for six months, following which it will be transferred to the regular market under the Consumer Discretionary sector. Following the listing of AlAbraaj Restaurants Group, the total number of listed companies on Bahrain Bourse rose to 41.
“This IPO marks a number of firsts for BHB: it’s the first to structure dividend payments quarterly, the first to sell new and existing shares simultaneously, the first to allow subscriptions with deferred funding, the first to allow lead manager discretion on allotment, the first to offer an online application platform with biometric KYC, and the first family business to list in 20 years,” said SICO group head of investment banking Wissam Haddad. “From a single family-owned business, the company now has hundreds of new families as shareholders, totalling more than 700 individuals and institutions.”
avinash@gdnmedia.bh
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