Bahrain’s AlAbraaj Restaurants seeks to raise BHD9m in IPO

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Bahrain’s AlAbraaj Restaurants Group plans to raise as much as $23.9m (BHD9m) from the sale of a 35 per cent stake in an initial public offering (IPO) on the local bourse, the restaurant chain disclosed on Monday.

AlAbraaj said the offer period runs from November 24 to December 8, and the trading debut on the Bahrain Bourse is scheduled for December 19.

To attract investors, the restaurant chain plans to offer a quarterly dividend of up to BHD 20,000 to retail investors within their allocated portion, the first on the Bahrain Bourse. AlAbraaj’s listing will be a rare event for Bahrain Bourse, which hasn’t seen a new listing since 2018, according to EY.

Founded in 1987, AlAbraaj Restaurants manages 16 brands, including Bindaira, NuAsia, YaSalam, and Lumee, across 37 locations in the kingdom and five franchise branches in Bahrain and Saudi Arabia.

“Deciding to go public reflects our confidence in the future of AlAbraaj Restaurants Group. We are strategically positioned to seize exciting opportunities in rapidly expanding regional markets,” Hamad Rashed Isa, chairman of AlAbraaj, said in a statement, adding that the IPO will enable the company to expand its presence further and enhance its offerings.

AlAbraaj has hired SICO as the mandated lead manager, underwriter and listing agent, while Khaleej Bank is the receiving bank.

The restaurant chain’s IPO joined a wave of private company listings in the Middle East this year. IT services firm Alpha Data is considering listing in Abu Dhabi. Saudi Arabia’s capital markets regulator also recently approved IPOs for cosmetics retailer Nice One and hospital operator Almoosa.

Meanwhile, Middle East hypermarket chain operator Lulu Retail sold 3.10 billion shares to raise $1.72bn in an IPO on the Abu Dhabi Securities Exchange, while delivery firm Talabat plans to sell a 15 per cent stake in an IPO) on the Dubai Financial Market in what is set to be one of the biggest listings in the region.

Read: Delivery Hero’s Talabat to divest 15% stake via IPO