BCFC plans to raise $66m with rights issue
Manama, September 25, 2008
Bahrain Commercial Facilities Company (BCFC) is launching a rights issue to raise around BD25 million ($66.3 million) to fund the future growth strategy of its commercial businesses.
These include Bahrain Credit, the credit and consumer facilities company, National Motor Company, Tas'heelat Insurance Services and Tas'heelat Real Estate Services Company, said a report in our sister publication, the Gulf Daily News.
Shareholders registered on BCFC's register at September 29 will be invited to subscribe for a total of 42,350,000 newly issued ordinary shares at an offer price of BD0.600 each.
Shareholders will have the right to purchase 35 shares for every 100 shares held.
The offer period will open on October 8 and close on October 22.
'The significant growth of Bahrain's economy is rapidly changing our markets and we need to benefit from the available and future opportunities to achieve the best positioning for the company's future growth,' said BCFC chairman Abdulrah-man Yusuf Fakhro.
'By investing now, our shareholders will realise the benefits of this strategy in increased shareholder value, as we develop our business to meet the increasing demand in consumer credit and vehicles markets.
'The offer price represents a good opportunity for our shareholders to buy into the future success of our strategy, a strategy which has delivered consistent value, with a 24 per cent return on equity, 84 fils of earnings per share and a 40pc dividend ratio in 2007,' he added.
During the subscription period, shareholders can obtain copies of the information memorandum and subscription application forms from BBK at its main branch office in Government Avenue, Manama, as well as at its branch in the Budaiya Financial Mall, Budaiya Highway. - TradeArabia News Service