Markets

More companies tipped to list on Bahrain Bourse

November 18, 2024, 4:10 PM

Bahrain Bourse is one of the Gulf's smaller exchanges, with a market cap of about $20bn

First listing since APM in 2018
IPO of restaurant group AlAbraaj
Joint listings being considered

AlAbraaj Restaurants Group’s debut on Bahrain Bourse – the first listing on the exchange in more than five years – will pave the way for more activity, experts have told AGBI.

The AlAbraaj initial public offering (IPO) this month is the first since the listing of APM Terminals Bahrain in 2018, according to consultancy EY.

But Usman Ahmed, group CEO of National Bank of Bahrain, said he was expecting more IPO activity on the bourse.

“Definitely,” he said. “That’s an area of focus for the government and for the financial sector and we know that some clients of ours are looking.”

The market capitalisation of the Bahrain Bourse is about $20 billion, which is one of the lowest in the Middle East.

The region’s IPO sector is dominated by Saudi Arabia and the UAE, although Oman has signalled an intention to strengthen its stock market. Almost $2 billion was raised from the IPO of state oil group OQ Exploration and Production last month.

“We certainly have an objective to have a more active capital markets segment in Bahrain,” said Ali Al Mudaifa, chief of business development at Bahrain Economic Development Board.

Under the proposed merger between Aluminium Bahrain and subsidiaries of Saudi Arabia’s Ma’aden, shares of Bahrain-listed Alba would also be cross-listed on the Saudi stock exchange. A decision on the merger is expected by the first quarter of 2025.

“Obviously we would like to see more listings and there is a strategic outlook to have more joint listings with neighbouring Saudi Arabia,” said Al Mudaifa.