Markets

Restaurant chain AlAbraaj plans IPO on Bahrain Bourse

November 11, 2024, 4:40 PM

AlAbraaj has several franchises in Saudi Arabia, including Mezza-W-Mashawi at Riyadh's King Khalid airport

AlAbraaj to list by end of year
15 brands in 37 locations
Sico named lead manager

AlAbraaj Restaurants Group is planning to list on Bahrain Bourse before the end of 2024.

Founded in 1987, the restaurant chain manages 15 brands across 37 locations in Bahrain. It employs about 1,200 people.

AlAbraaj also franchises five restaurants, three of which are in Saudi Arabia – Khobar, Jeddah and Riyadh. The company is finalising plans for direct entry into the Saudi Arabian market.

Hamad Rashed Isa, chairman of AlAbraaj, said the listing would allow the company to “bring our restaurant concepts to new markets and pave the way for future growth”.

AlAbraaj has appointed Sico as the lead manager for its IPO. No further information on share price or timing has been released.

The market capitalisation of the Bahrain Bourse sits at about $20 billion, which is one of the lowest in the Middle East. Saudi Arabia leads the region with a market cap of about $2.7 trillion.

AlAbraaj’s listing will be a rare event for Bahrain Bourse. According to EY, just one company has listed on the exchange since 2018.

There has been marginally more activity on the Bahrain Investment Market (BIM), a newer equity market designed to allow fast-growing companies in the country and region to access growth capital.

It offers a more relaxed regulatory framework with easier disclosure and minimal admission requirements, and enables companies to transition to the regular market. This year, Bahraini investor Hope Ventures listed on the BIM.

Demand from investors, especially foreign institutions, for Gulf IPOs and for greater exposure to the GCC economies, indicates growing confidence in the region, AGBI reported last month.

There were 30 IPOs across the GCC countries in the first nine months of 2024. Combined, these raised $5.2 billion.