AlAbraaj Restaurants Group, a leading company in Bahrain’s restaurant industry, has announced the initial public offering (IPO) of 38 million of its shares equating to 35% of its total issued share capital after the IPO.

The offer price is set at 236 fils per share and the IPO will collect a total of BD9 million ($23.91 million).

The IPO is structured with 70% of the shares on offer allocated to professional investors (i.e., those applying for over 1.5 million shares) while 30% of the shares have been allocated to retail investors (i.e., those applying for less than 1.5 million shares).

The offer period will commence next Sunday (24 November) and end on December 8, 2024.

Hamad Rashed Isa, Chairman of AlAbraaj Restaurants Group, stated: “Today is a significant moment in our journey, which began in 1987 with the vision of becoming a timeless beacon of authenticity and innovation in the food and beverage industry.

“For almost four decades we have consistently delivered quality, innovation, and memorable experiences to our customers. Our growth has been driven by our commitment to excellence and the trust we've built with our loyal patrons and partners,” he said.

Deciding to go public reflects the company’s confidence in the future of AlAbraaj Restaurants Group. “We are strategically positioned to seize exciting opportunities in rapidly expanding regional markets. This IPO will enable us to expand our presence further and enhance our offerings,” he said.

AlAbraaj Restaurants Group has become synonymous with delivering high-quality dining experiences that celebrate both local flavours and international cuisines, with brands such as Al Abraaj, Bindaira, NuAsia, YaSalam, Lumee, Otto, LaRo, Sangam, San Carlo Cicchetti, Mazmiz, La Rotisserie and several cloud kitchen concepts. AlAbraaj also franchises five restaurants, three of which are located in key cities in Saudi Arabia -- Khobar, Jeddah, and Riyadh.

Commenting on the valuation of the IPO and the market opportunity that Al Abraaj presents for both local and regional investors, Wissam Haddad, Group Head of Investment Banking at SICO, the mandated lead manager for the IPO, said: “The much-anticipated IPO offers investors an expected annual dividend yield of 8% on the offer price which equates to over 18% on the shares’ nominal value.

The company intends to undertake quarterly dividend distributions, a first on the Bahrain Bourse as well as a priority allocation of up to BD20,000 to retail investors within the overall retail allocation".

Starting on 24 November, investors can submit their applications through the SICO’s eipo portal link available at www.alabraajipo.com or in person through any branch of Khaleeji Bank. The prospectus is currently available electronically at www.alabraajipo.com. Print copies of the prospectus and the application form will also be available at all branches of Khaleeji Bank and the Bahrain Bourse.

On 19 December, the company’s shares will be listed and will trade on the Bahrain Bourse under the ticker symbol ABRAAJ. All applicants that have been allocated shares in the IPO are then eligible to trade by opening an account with a Bahrain Bourse registered brokerage if they do not already have one. Furthermore, applicants allotted shares in the IPO will be eligible to any dividends distributed by the company for the fourth quarter of 31 December 2024 and thereafter. The company has also appointed SICO to provide price stabilization and liquidity provision services from the start of trading on the Bahrain Bourse.

SICO is the mandated lead manager, underwriter, listing agent, price stabilizer and liquidity provider and Khaleej Bank has been appointed as the receiving bank with all of its branches across Bahrain participating in the IPO. Bahrain Bourse is the Listing Exchange and Trowers & Hamlins and Hassan Radhi & Associates are the legal advisors. KPMG is the financial due diligence advisor and BDO are the Auditors to Al Abraaj Restaurant Group and Bahrain Clear are the allotment agent for the IPO and share registrar for the company.

Founded in 1987, AlAbraaj Restaurants Group has emerged as one of Bahrain’s leaders in the food and beverage scene. Known for its diverse range of local and international cuisines, the Group operates 16 brands with 37 physical branches in Bahrain and 5 franchised branches in both Bahrain and Saudi Arabia, and 22 virtual branches, with around 1,200 employees. – TradeArabia News Service

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