Bahrain’s VCBank lists Turkish F&B firm on Borsa Istanbul

VCBank

Bahrain’s Shariah-compliant Venture Capital Bank has listed Turkish food and beverage producer Goknur, its investee company, on the Borsa Istanbul exchange.

A total of 79.25 million shares were offered to the public, which drew interests worth 6.9 billion liras ($364 million) and was 7.9 times oversubscribed.

VCBank chief executive Robert C Wages said the market interest underlines Goknur’s position as a significant player in its sector and the confidence in its performance and growth trajectory.

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Mahmood Zainal, executive director investments at VCBank, added this was the first initial public offering implemented by the bank as a result of its more active exit strategy across all its investment segments.

In February, Osman Aslanali, general manager of Göknur, told Anadolu Agency that the company would invest 65 percent of the funds from the IPO.

“We will utilise a significant portion of it in our orchard investments,” he said. “This is a very necessary investment for our sustainability and to extend our season.”

Almost 15 percent of the funds will go to developing solar energy systems, while a similar percentage will be spent on modernising machinery and equipment. 

The juice producer will also use the IPO proceeds to reduce financial costs by paying off some of its existing financial debts.

VCBank and its investors hold an 83.5 percent stake in Göknur, according to the bank’s website.