Aluminium Bahrain launches IPO process

(MENAFNEditorial) At a Press Conference held today at the offices of Bahrain Mumtalakat Holding Company B.S.C. (c) (“Mumtalakat”), it was announced by Talal Al Zain, Chief Executive Officer of Mumtalakat, and Mahmood Al Kooheji, Chairman of Alba, that Aluminium Bahrain B.S.C. (c) (“Alba” or the “Company”) has launched an Initial Public Offering (“IPO”). The Offering will be by Mumtalakat as the Selling Shareholder, for up to 163,300,000 ordinary shares (“Ordinary Shares”), representing up to 11.5% of the Company’s total issued, fully paid and outstanding share capital, in the form of Ordinary Shares listed on the Bahrain Stock Exchange and global depositary receipts representing such Ordinary Shares (“GDRs”) listed on the London Stock Exchange. The Offer Period for Ordinary Shares opens on Sunday 24 October 2010 and closes on Thursday 4 November 2010. The Initial Offering Price for general Retail Investors is BD 1.250 per Ordinary Share, while Bahraini Citizens will enjoy a ten percent discount when purchasing between 100 and 2,000 Ordinary Shares. The price range for Institutional Investors has been set between BD 0.900 to BD 1.250 per Ordinary Share, and US$11.97 - US$16.62 per GDR (each GDR will represent 5 Ordinary Shares). The Final Offering Price will be announced on Monday 8 November 2010 on the basis of the institutional bookbuilding process. If the Final Offering Price is lower than the Initial Offering Price, Retail Investors will have the option to receive a cash refund or additional shares. “Mumtalakat was set up to help grow the wealth of Bahrain and drive value creation in the strategic non-oil and gas related assets of Bahrain, and this process supports those aims,” said Mr Al Zain. He also commented that the Offering is aligned with Bahrain’s Economic Vision 2030 to grow the wealth of Bahrain and to attract Foreign Direct Investment into the Kingdom. Mr Al Zain said, “The listing on both the London and Bahrain Stock Exchanges will raise Bahrain and Alba’s profiles in the international markets and illustrates the progress Bahrain is making as a productive, globally competitive economy. Furthermore the Alba listing shows Mumtalakat’s commitment to transparency and best practice corporate governance standards for us and all of our portfolio companies.” Mahmood Al Kooheji highlighted Alba’s excellent operational track record, as an aluminium producer of international significance with a diversified customer base across the Middle East and North Africa (MENA), Asia and Europe. He pointed to a July 2010 report by CRU Strategies, a independent business analysis and consultancy group, which stated that the Company is the fourth-largest individual producer of aluminium by capacity. “Alba is a flagship business for Bahrain and has a positive outlook going forward, given its strong operational track record. I also thank all of Alba’s employees for the commitment and high standards that they have achieved for the Company,” commented Mr. Al Kooheji. Mr. Al Kooheji also discussed Alba’s current strategy, which is focused around continuing organic growth initiatives, expanding the production of higher value-added aluminium products and maintaining a continuous cost performance improvement culture. The Company is also emphasizing a direct sales approach and the expansion of its customer base in Asia and Europe while maintaining the Company’s dominant position in MENA. “It is also vitally important for us that the Alba employees, who have played such an important role in the success we achieved to date, will be able to participate and share in the ownership of the business, whilst the process will support our focus on implementing best practice standards of transparency and corporate governance,” he concluded. “This is an exciting time for both Alba and Mumtalakat and we are very pleased that this IPO is being undertaken, helping support the government’s aim of achieving a better life for every Bahraini,” said Shaikh Mohammed bin Essa Al Khalifa, Chief Executive of the Bahrain Economic Development Board, commenting on the news announced at today’s Press Conference. He also highlighted that, “This offering is particularly important for a number of reasons. Firstly Alba plays a significant economic role, and it is also the largest individual employer of Bahrainis in the Kingdom. Secondly, it supports the aims of Economic Vision 2030 by increasing the role of the private sector, driving forward the economic diversification process and helping attract foreign direct investment into Bahrain.” Lastly, he emphasised that, “thanks to the vision and leadership of His Royal Highness Prince Salman Bin Hamad Al Khalifa, Crown Prince and Chairman of the Economic Development Board, the people of Bahrain will have the exciting opportunity to become shareholders in one of the Kingdom’s leading businesses.” The Preliminary Offering Memorandum issued in relation to the Offering of Ordinary Shares in Aluminium Bahrain B.S.C. (c) and Application Forms will be available from branches of the Receiving Banks, detailed below, and the offices of the Regional Lead Manager and Registrar from October 24. The Receiving Banks, the Regional Lead Manager and Registrar will also have Application Forms available. Persons interested in applying for Ordinary Shares should read the Offering Memorandum and the Application Forms in full. Residents and Citizens from all territories other than the US, Canada, Australia and Japan can participate in the IPO. J.P. Morgan Securities Ltd. has been appointed to act as Sole Global Coordinator and Sole Bookrunner of the Offer and Lead Manager of the offering of GDRs. Gulf International Bank B.S.C. has been appointed as Regional Lead Manager of the Offer. Citigroup Global Markets Limited has been appointed Co-manager of the offering of the GDRs. The Underwriters are Gulf International Bank B.S.C. (c), Bahrain Islamic Bank B.S.C., National Bank of Bahrain B.S.C. and Al Salam Bank-Bahrain B.S.C.

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