Bahrain: Rights Issue of TRAFCO oversubscribed
The Bahrain-based General Trading & Food Processing Co B.S.C (“TRAFCO”), the regional food retail, wholesale and distribution business, has announced that its recent Rights Issue to raise BD3.7 million was oversubscribed by 22 percent. 13,445,842 shares were offered in the Rights Issue, with investors subscribing for a total of 16,388,028 shares.
Ebrahim Mohamed Ali Zainal, Chairman of TRAFCO, said, “This is an important stage in the strategic development of TRAFCO. With the additional capital raised through the Rights Issue, we will be able to invest in modern food manufacturing and warehousing operations as well as investing in our retail expansion to grow the business for the future. The Bahrain market offers significant opportunities for growth as the mass grocery market expands rapidly. We are also taking our food sector expertise to new markets, such as Qatar, to capture further revenue opportunities for the business.
“We would like to thank our shareholders for continuing to support the company as we continue to execute on our strategy, a strategy which has seen the market value of the business nearly triple over the past five years.”
TRAFCO, listed on the Bahrain Stock Exchange, is one of Bahrain’s largest food importers and distributors. It also owns and runs the chain of Metro supermarkets and convenience stores in Bahrain. In addition, TRAFCO owns the rights to Applebee’s, the world-renowned casual dining restaurant chain and also operates a separate fresh fruits and vegetables import and distribution business.
Securities & Investment Company (SICO) is acting as an Issue Manager to TRAFCO’s Rights Offering.