Government of Bahrain to confirm Seef Properties IPO
The Bahrain Government today confirmed it is to proceed with an initial public offering (IPO) of shares in Seef Properties, the government-owned retail real-estate company which manages malls and properties at 45 locations across the Kingdom.
Established in 1999, Seef Properties now manages Bahrain’s most popular shopping malls, Seef Mall and Isa Town Mall, as well as entertainment outlets and other properties across the island. In total, it has more than 100,000 m2 of retail space, with 700 retail tenants.
The Ministry of Finance manages the Government’s stake in Seef Properties of just over 48 per cent.
The Government confirmed its plans for an IPO, and that it would be particularly attractive for Bahrainis, with additional ‘Bahraini only’ incentives.
Shaikh Mohamed Bin Khalifa Al-Khalifa, Director, Government Shareholdings at the Ministry of Finance, said: “The Bahrain Government has invested for many years in the development of Seef Properties as one of the leading companies in the Kingdom. The company now stands on its own two feet as a growing and successful business – and we want our citizens to have a chance to share in that success.
“We will announce full details of the IPO in due course. The important message for today is that the IPO is happening and that we will do everything we can to encourage and support the widest possible level of share ownership amongst the Bahraini people. This will include innovative incentives available only to Bahrainis.”
Ramy Echo, Head of Corporate Finance at Securities & Investment Company who has been appointed as Lead Manager for the IPO, commented: “Seef Properties IPO is a pioneering Government initiative that would add a considerable supply of securities stimulating the capital markets and creating a new class of capital owners.
“We have closely worked with the Ministry of Finance on the IPO that will primarily promote the offering to Bahrainis. The IPO structure would include several innovations on a regional perspective that would further reinforce Bahrain’s position as a leading regional financial hub with innovative capital markets offerings.”
Seef Properties recently opened the latest extension to Seef Mall, its flagship development, which attracts an average of 25,000 shoppers per day to more than 300 retail outlets. All property in the new extension was fully let more than three months ago and more than half of the new tenants have opened their stores or food outlets.
As well as Seef Mall and Isa Town Mall, Seef Properties owns many individual retail outlets across the country, with shutter stores and other outlets in almost every Bahraini village and community.