APM Terminals Bahrain is expecting to raise around BHD 12 million ($32 million) through an initial public offering (IPO) that opened on November 8th. This is an important milestone as it is the first IPO for a transport and logistics company in the Kingdom to list on the Bahrain Bourse.
APM Terminals Bahrain will offer 18 million shares, equivalent to 20 per cent of its issued share capital, at BHD 0.66 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% are held by YBA Kanoo Holdings of Bahrain.
Commenting on the IPO, Mark Hardiman, Chief Executive and Managing Director, APM Terminals Bahrain, said, “This is a significant moment for APM Terminals Bahrain as we move forward to launch our IPO, and gives an opportunity for the local and wider regional community to invest in a successful public-private partnership and Bahrain’s only commercial port.” The offering will remain available until November 24th and APM Terminals Bahrain shares will start trading on the Bahrain Bourse on 9th December.
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 1st April 2009, is renewable with the mutual consent of the company and the Bahrain Government, and gives APM Terminals Bahrain exclusive rights to manage all of Bahrain’s container traffic and the majority of its general cargo traffic. 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).
The port currently has a container throughput capacity of 1 million teu per annum and achieved a utilisation rate of around 40% in 2017. There is potential to further expand capacity to 2.5 million teu a year in the future, the company states.
APMT Bahrain is focussed mainly on export and import traffic flows, although it aims to develop container transhipment services for the Upper Gulf region out of KBSP. The port is also keen to develop project cargo imports for a number of infrastructure projects in the region, and to attract international cruise lines to include Bahrain on their itineraries.