APM Terminals planning to raise $32m through IPO

MANAMA: APM Terminals Bahrain (APMT Bahrain), the operator of the Khalifa Bin Salman Port (KBSP), plans to raise almost BD12 million ($32m) through its planned initial public offering (IPO).

The company will offer 18m shares, equivalent to 20 per cent of its issued share capital, at 660 fils per share, it said in the IPO prospectus posted on the Bahrain Bourse website.

Based on the offer price, the company is valued at BD60m ($159.6m).

APMT Bahrain, which has operated in the country for 12 years, is part of the Netherlands-based group APM Terminals, which is itself part of the Maersk Group.

The offering will start on November 8 and will remain open until November 24.

The company’s shares will start trading on December 9, according to the prospectus.

Sico is working as lead manager, underwriter and market maker for the planned transaction.

APMT Bahrain is a joint venture between APM Terminals International, holding 80pc, and YBA Kanoo Holdings of Bahrain, holding 20pc.

With the share offering, APM Terminals will divest 16pc stake diluting its holding to 64pc and YBA Kanoo will divest 4pc, reducing its stake to 16pc.

The IPO was written into the concession agreement signed in 2006 by the partners, which began by taking over the old port that year.

The 25-year concession period began in 2009, when the new port opened.

It became fully operational in April 2010.

The concession gives APM Terminals Bahrain exclusive rights to manage all of Bahrain’s container traffic and to a great extent general cargo traffic for 25 years. 

APM Terminals Bahrain also has exclusive rights to provide marine services (such as pilotage and towage) to KBSP and Mina Salman Port.

KBSP currently has a container throughput capacity of 1m TEUs per annum, which can be augmented to 2.5m TEUs per annum in the future.

Source: http://www.gdnonline.com/Details/428434