Leading telecommunications operator Zain Bahrain has announced the results of subscription for its initial public offering (IPO) of shares.

In a notification published in the local media yesterday, the company said 16.7 million shares amounting to 34.8 per cent of the offering would be allotted to retail and institutional investors, with all subscribers getting the number of shares they had applied for, said a report in the Gulf Daily News (GDN), our sister publication.

The remaining 31.2 million shares amounting to 65.2 per cent of the IPO had been subscribed to by the underwriter.

The allotment will be done on Thursday.

The licensed full service telecommunications operator launched the IPO comprising 48 million shares or 15 per cent of issued shares prior to offering at a price of 190 fils on September 2 and it was initially supposed to close on September 16.

The offering was extended till September 30.

It was open to Bahraini institutional and retail investors as well as GCC institutional investors.

Based on the IPO price, the company is valued at $161.2 million (BD60.8 million).

A coverage initiation report by Mubasher Financial Services on Monday said the IPO price was at a discount to fair value.

Mubasher said it values Zain Bahrain at BD88.2 million or BD0.240 per share, implying a 26 per cent upside to the IPO price. - TradeArabia News Service