Silah debutrekindles investor interest

TDT | Manama

Email: mail@newsofbahrain.com

Silah Gulf’s trading debut on the Bahrain Bourse on Tuesday was seen by market leaders as part of a wider change in the market’s direction, where renewed investor appetite and expectations of further listings suggest momentum that is beginning to take hold.

Senior banking and investment executives attending the bell-ringing ceremony said the listing offered an early indication of how Bahrain’s capital markets could evolve in the coming phase, particularly after a long gap between major public offerings.

Market momentum

Yaser Alsharifi, Group Chief Executive of BBK, said the Silah listing represented an opportunity to re-energise market interest at the start of the year.

“Bahrain Bourse has been the longest-established, best-governed market in the region, and I think this is the first opportunity of the year to showcase the potential businesses that can come to market, and reactivate investors’ interests, both locally and globally, and there’s more to come Insha’Allah. We’re hopeful that this is a good start to the year and more to come,” he said.

The debut comes at a time when policymakers and market participants have been seeking to broaden the exchange’s sectoral mix and encourage more private companies to tap public capital.

Investor appetite

Ayman Gad-Allah, Head of Investment Banking at SICO, said the Silah IPO sent a strong signal about market readiness and demand for new issuances, pointing to the response from investors.

“It’s it’s a good signal for the growth of the market as we add one more company to the stock exchange, and we expect more to come. Silah Gulf was a successful IPO and it’s a witness of the strengths of the market and the possibility of more growth stories like Silah to come and for private businesses to list on the stock exchange,” he said.

He added that the level of demand underscored pent-up appetite in the market.

“The oversubscription is a witness of the market readiness for such IPOs and for the hunger of the market, for new issuances, especially in different sectors such as the services sector. In the F&B sector last year, we saw the IPO of AlAbraaj,” Gad-Allah said.

“The good thing is we kept the momentum and a year after we have an IPO after four or five years of gap. We are happy to see a momentum post AlAbraaj and now we have Silah, and there is more in the pipeline. We hope, Insha’Allah, 2026 will bring more companies to the stock exchange.”

Growth ambitions

For Silah Gulf, the listing represents more than just a market debut, according to its Chief Executive Officer Feras J. Ahmed, who outlined three core reasons behind the move.

“We’re very pleased on the commencement of trading of our shares today on Bahrain Bourse. Being listed has three meanings for us. One is this is a capital increase, first and foremost for us, and this capital increase aims to fund our investment in AI and latest technologies as well as fund our ambitions for inorganic growth,” he said.

“Second

is that any listed company has to comply with certain corporate governance and transparency principles. Being a listed company means that we are transparent, we are open, and that we uphold the highest standards of corporate governance in compliance with the local regulations.”

He said the third dimension was the company’s role in Bahrain’s broader economic landscape.

“We are part of a bigger ecosystem of economic development in Bahrain and we are part of an economic plan. We are a Bahraini company we are part of the the overall economy, contributing to job creation and economic growth, and we are very proud to be a part of this job,” Ahmed said.

Wider exposure

Ahmed added that opening the offering to both Bahraini and non-Bahraini investors reinforced the openness of Bahrain’s capital markets and expanded the company’s visibility.

“Our offering was open to both Bahraini and non-Bahraini investors. Of course, the capital markets in Bahrain are open. It’s an open market, and we hope to have investors from outside Bahrain as well,” he said.

“Looking forward, this means that we are now on the radar and are now being tracked. It brings more exposure, visibility, and awareness about the company.”

He said the listing also enhanced credibility with clients and staff alike.

“Even for our clients, being a traded company means that you are dealing with a very reputable organization. For our staff, it means that we are a credible organization, and they look forward to working with an organization which is listed on Bahrain Bourse.”

Ahmed said the company was entering a new phase marked by both opportunity and responsibility.

“So exciting times ahead. Challenging times, in terms of growth and in terms of new opportunities, but again, this will present us with the right exposure, to conquer these challenges in the markets.”