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APM Terminals Bahrain aims to raise BHD 12 million with IPO

Logistic News - Published on Thu, 08 Nov 2018

Image Source: Marine Insight
APM Terminals Bahrain plans to raise around BHD 12 million through its planned initial public offering (IPO). This is the first IPO for a transport and logistics company in the Kingdom to list on the Bahrain Bourse. The listing forms part of the contractual agreement made when the port opened in 2009. APM Terminals Bahrain will offer 18 million shares, equivalent to 20 per cent of its issued share capital, at BHD0.66 per share. The net proceeds will be paid to its current shareholders pro-rata based on their shareholding. APM Terminals currently holds 80% of the shares and the remaining 20% of shares are held by YBA Kanoo Holdings of Bahrain, a leading diversified regional business group.

The offer price of BHD 0.660 per share, equates to a price-to-earnings (P/E) ratio of 5.7x 2017’s net earnings of BHD 10.4 million. The offering will start on November 8 and will remain open until November 24. Given the strong investor appetite the company wanted to ensure that retail investors (i.e., those applying for less than 100,000 shares) have equal access to the market opportunity by allocating 30% of the shares to retail investors.

Furthermore, retail investors will have a priority allocation for the first 15,000 shares applied for.

APM Terminals Bahrain has an exclusive 25-year concession from the Bahrain Government to manage and operate Khalifa Bin Salman Port (KBSP). The concession, which commenced on 1 April 2009, is renewable with mutual consent of the company and the Bahrain Government.

The concession gives APM Terminals Bahrain exclusive rights to manage all of Bahrain’s container traffic and the majority of its general cargo traffic. It prohibits the Government from building and operating another port facility in Bahrain (other than private jetties or fishing harbours) until 1 April 2024.

APM Terminals Bahrain also has exclusive rights to provide marine services (such as pilotage and towage) to KBSP and the old Mina Salman Port (MSP). APM Terminals Bahrain can also provide pilotage services within Khawr Al Qulay’ah, Sitra anchorage and approach channel to all private jetties requiring such services, except for Arab Shipbuilding and Repair Yard. APM Terminals Bahrain also has non-exclusive rights to provide marine services outside KBSP and MSP, within the territorial waters of Bahrain.

Currently, the port has a container throughput capacity of 1 million TEUs per annum, with utilisation of around 40% in 2017. There is potential to expand to 2.5 million TEUs per annum in the future.

Source :

Posted By : Joykumar Irom on Thu, 08 Nov 2018
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