Eskan Bank REIT exceeds expectations
Manama : The Initial Public Offering (IPO) of the BD19,800,000 Eskan Bank Realty Income Trust (REIT) achieved a subscription level of 95.5 per cent.
Total subscriptions from eligible applicants amounting to BD13.8 million (US$36.6m), representing 137,863,559 units at BD0.100 per unit, Eskan Bank and Securities & Investment Company (SICO) announced in a statement.
The IPO offered 144,394,499 units of the total 198,000,000 units in issuance at an offer price of BD0.100 units, totalling BD14.4m (US$38.2m).
The IPO opened on 22 November and closed on 6 December 2016. SICO is the mandated lead manager for the IPO as well as the REIT’s sub-investment manager and market maker.
Commenting on the result, Dr. Khalid Abdulla, the General Manager of Eskan Bank, stated: “Subscriptions in the REIT units exceeded our expectations considering the challenging regional economic conditions.”
“We now look forward to the listing of the REIT’s units on the Bahrain Bourse on 2 January 2017 after which all unit holders can start trading through their appointed broker,” he added.
Najla M. Al Shirawi, Chief Executive Officer of SICO, said: “It is particularly pleasing that the unique structuring of the offering, with benefits comprising attractive returns, diversity, liquidity and lower risk, proved to be so popular with retail investors fulfilling the objective of Eskan bank to benefit individual investors.”
The Trust announced that units will be allotted in consultation with the lead manager. Allotment notices will be mailed to applicants by 22 December 2016 to the address specified on the application form.
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