Alba planning to float shares

MANAMA: Alba is studying a privatisation plan with an initial public offering (IPO), it was revealed yesterday. The shareholders are expected to receive $200 million in dividends by the end of the year, said Alba board chairman Dr Esam Fakhro.

He said a study on floating the company shares was now in the final stages.

If the study is approved by the shareholders, the IPO would be issued some time next year.

The project is aimed at making Alba a commercial entity, said Dr Fakhro.

Alba is 77 per cent owned by the Bahrain government, 20pc by SABIC of Saudi Arabia, and three pc by Breton Investments of Germany.

A marketing company, Alma, was formed earlier with the responsibility of marketing the shares of the government and SABIC.

If the shareholders agree on an IPO, both Alba and Alma will be merged.

The government shares in Alba are now held by Momtalakat Holding Company, which is wholly owned by the Bahrain government.

The company is chaired by Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa.

Dr Fakhro refuted allegations made by some people that Alba was a losing proposition.

The company's equity-loan portfolio is 40pc: 60pc, he said.

"This means 60pc of Alba's net assets are financed as loans, and the loans to be repaid are to the tune of BD70 million," said Dr Fakhro.

"The financial prospects are good, and the shareholders are expected to receive $200m by the end of the year.

"We expect the aluminium prices to be stabilised soon, and if so, next year could be even better."

Dr Fakhro said Alba contributed to more than 10pc of the country's GDP.

"A salary revision was implemented recently at the recommendation of a human resources consultant," he noted.

"The morale of employees is now in good shape, and this will have a positive impact on the company's productivity."