(MENAFN - Bahrain Tribune) The BD25 million rights issue of the Bahrain Commercial Facilities Company (BCFC) to fund its future growth strategy will close on October 22. Shareholders registered on BCFC's register on the record date of September 29 still have time to subscribe to the offer.
The company owns several of Bahrain's leading businesses, including Bahrain Credit, its leading credit and consumer facilities company, National Motor Company, Tas'heelat Insurance Services and Tas'heelat Real Estate Services Company. Shareholders registered on BCFC's register on the record date can subscribe for a total of 42,350,000 newly issued ordinary shares at an offer price of BD0.600 each. Shareholders have the right to purchase 35 ordinary share for every 100 shares held on the record date.
"The offer price represents 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," said Abdulrahman Yusuf Fakhro, Chairman of BCFC. "The capital raised through the rights issue will enable us to invest across our business operations to ensure that we continue to meet our customers' ever-changing financial needs, driven by our rapidly developing economy."
Adel Hubail, Senior Vice President and Head of Consumer Finance, said the proceeds from the rights issue would enable the company strengthen its consumer finance business with additional funding and reducing leverage to improve net earnings. "We will also invest in creating additional capacity for our growing automotive business, National Motor Company. In addition, we will 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 the insurance and real estate markets," he added.
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. Copies of the Information Memorandum and Application Forms are also available at the offices of the Issue Manager, Securities & Investment Company (SICO Investment Bank), BMB Centre, Diplomatic Area and the Registrar, KPMG, Hedaya House, Government Avenue.
The Kingdom-based, investment bank, Securities and Investment Company, is acting as lead manager to the rights issue. Hatim S. Zu'bi & Partners are acting as legal advisors and BBK as receiving bank.