(MENAFN - Bahrain Tribune) The Kingdom's leading provider of consumer credit, insurance and real estate services, Bahrain Commercial Facilities Company (BCFC) yesterday announced the launch of its rights issue to raise BD25 million to fund the future growth strategy of the group, which includes its wholly owned subsidiaries - National Motor Company, Tas'heelat Insurance Services and Tas'heelat Real Estate Services Company.
Shareholders registered on BCFC's register on the record date as at September 29 will be invited to subscribe for a total of 42,350,000 newly issued ordinary shares at an Offer Price of BD0.600 each. Shareholders will have the right to purchase 35 Ordinary Share for every 100 shares held on the Record Date. The Offer period will open on October 8 and close on October 22.
"The significant growth of Bahrain's economy is rapidly changing our markets and we need to ensure that we are in the best possible position to create future growth. By investing now, our shareholders will realise the benefits of this strategy in increased shareholder value, as we develop our businesses to meet the changing needs of the Bahraini market," said the BCFC Chairman, Abdulrahman Yusuf Fakhro at a press conference yesterday.
He said the proceeds from the rights issue would enable the company strengthen its consumer finance business with additional funding and by reducing leverage to improve net earnings. "We will also invest in creating additional capacity for our growing automotive business, National Motor Company and we also intend to invest in new products and business lines across our entire operations, ensuring that we remain ahead of our competition by delivering what our customers need."
"This is an exciting period for the business as we move to consolidate our leading position in the vehicle financing market and build upon our growing positions in our other businesses as well."
The Offer Price, he said, represented 'a good opportunity for our shareholders to buy into the future success of our strategy, a strategy which has delivered consistent value, with a 24 per cent return on equity, 84 fils of earnings per share and a 40 per cent dividend ratio in 2007.
During the subscription period, shareholders can obtain copies of the Information Memorandum and Subscription Application Forms from BBK at its main branch office in Government Avenue, Manama, as well as at its branch in the Budaiya Financial Mall, Budaiya Highway. They would be also available at the offices of the Issue Manager, Securities & Investment Company (SICO), BMB Centre, Diplomatic Area and the Registrar, KPMG, Hedaya House, Government Avenue.
SICO, the Kingdom based, regionally focused investment bank, is acting as an Issue Manager to the Rights Issue.