DUBAI — Nass Corporation has announced successful completion of the first phase of its IPO plans with the private placement of shares with Gulf-based strategic investors.
The successful completion of the private placement paves the way for Nass Corporation BSC, which is currently under formation, to be established and listed on the Bahrain Stock Exchange through a public share offer later this year. It will be Bahrain's first regional family owned conglomerate operating in the construction sector to go public and the largest Initial Public Offering (IPO) on the Bahrain Stock Exchange in the Kingdom in the last eight years.
The private placement was oversubscribed during the recently concluded offer period, which focused on attracting selected GCC businesses and institutions as strategic investors to play a key role in the ownership and management of the new Nass Corporation. Five GCC based business groups, the majority of them diversified business entities, have taken a 24 per cent of shares in Nass Corporation. The strategic investors group will have representation on the corporation board, in accordance with the Commercial Companies Law of Bahrain.
The next stage is the IPO process starts in the fourth quarter of the year when 25 per cent of shares will be offered to public investors in Bahrain and the GCC; the founding shareholders will retain a majority shareholding in the Nass Corporation.
Sameer Abdulla Nass, Nass Group Managing Director, said: "The private placement was a resounding success and we are delighted to have attracted this high calibre of strategic investors from the region. Enquiries from interested parties are still being received, even after the private placement is closed. This clearly demonstrates a high level of confidence in the potential of Nass Corporation as a regional player."
"Construction as a sector is booming, certainly. What is encouraging is that investors of such high calibre have confidence in the long term prospects of the construction sector regionally," added Nass.