APM Terminals Bahrain aims to raise $32m with IPO
APM Terminals Bahrain plans to raise around BHD12m ($32m) 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.
The port currently 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.
Over the past nine years, APM Terminals has contributed towards positioning KBSP as a hub with its world-class operations and logistical solutions, serving both the country and the wider region, in line with the Kingdom’s Economic Vision 2030.
While APMT Bahrain continues to focus on its core service offerings within the Bahraini Export/Import segment, it expects to benefit from a number of internal and external initiatives, including ongoing discussions with feeder vessels to service the areas of Upper Gulf region out of KBSP. The port is also keen to develop preferred transhipment access to Upper Gulf states including Iraq and Kuwait.
APM Terminals Bahrain sees an opportunity to secure project cargo imports for a number of planning infrastructure projects in the region, including the modernisation project by the Bahrain Petroleum Company B.S.C.(c) (BAPCO), the light rail (metro) initiative, the new Bahrain-Saudi causeway, airport expansion and various new industrial projects being streamlined by the Economic Development Board and the Ministry of Industry, Commerce & Tourism of the Kingdom of Bahrain.
Together with the tourism authorities, APM Terminals Bahrain will also play a key role in continuing to attract international cruise lines to call at the port and including Bahrain as a destination on their itineraries. This will be part of a broader enhancement to marketing the port with shipping lines and other customers through various marketing channels including road shows, social media, press, customer visits, and participating in trade shows/conferences.