DUBAI — Nass Corporation B.S.C.'s Initial Public Offering (IPO) was over subscribed by 2.62 times, this was announced by the compnay yesterday.The IPO was open from October 9-30 this year. The total number of Ordinary Shares on offer to investors of all nationalities throughout the Gulf region numbered at 50 million shares which sold for BD 0.612 per share, giving the offer a total value of BD 30 million.
"The offer was oversubscribed by 2.62 times. We received subscription for 130 million shares for a total value of almost BD 80 million" said Hisham Al-Saie, Head of Corporate Finance at SICO Investment Bank ("SICO") the IPO Lead Manager.
"After obtaining approvals from the relevant authorities, the allotment basis for the subscription process gives each subscriber a minimum of 1,000 Ordinary Shares, giving a combined total of 19 million Ordinary Shares. The remaining shares were allotted on a pro-rata basis according to each individual subscriber's subscription amount" said Al-Saie.
"Investors are to be thanked for the successful completion of our share offering. They exhibited very high interest in becoming partners in this bold step by Nass Corporation. This strong response to the share offer reflects the quality and potential of our business, especially considering the current and sustainable boom in the construction sector throughout the region," said Sameer Abdulla Nass, managing director of Nass Corporation B.S.C.
"We believe we are well positioned to deliver sustained growth, and we look forward to creating further value for our new and existing shareholders," he continued. About 25 per cent of shares in Nass Corporation were made available through the IPO process and this will result in the corporation being listed on the Bahrain Stock Exchange (BSE) on the 22nd of November 2005. The Nass Corporation founding shareholders retain a 51 per cent majority stake in the company, and 24 per cent of shares were placed with GCC strategic investors through a private placement, which took place in June this year.
"The next exciting event for Nass Corporation's Investors will be cross listing the Company's Ordinary Shares with another GCC stock exchange sometime in the next few months, which will of course be subject to obtaining relevant regulatory approvals from those exchanges," said Al-Saie.