Etihad Shipping and Navigation Company has announced the private placement of 1.2 billion shares with a nominal value of BD0.100 each.

Etihad Shipping is a Bahraini closed shareholding company with a capital of BD120 million.

The company’s primary business objective is to own and operate a fleet of different shipping vessels within the Middle East and the GCC region, as well as international deep-sea routes, said a company official. 

'The placement price is 0.054 Bahraini dinar per share, which is 50 per cent of the nominal value and the subscription fee has to be paid on the day of subscription by investors,' he explained.

The closing date for applications to subscribe to shares is January 31, 2008.

The founding committee of the company comprises five investors from Bahrain, UAE, Saudi Arabia and Pakistan.

Members of the founding committee have collectively committed to subscribe to 15 per cent of the paid up capital of the company.

Ali Al Gaith, the founding member of Etihad Shipping and Navigation Company, said: “Commercial shipping in the GCC is an attractive high growth market. By leveraging on the current trade distortions between sources of supply and demand, and on Etihad’s position as a strong service provider, this private placement will ensure strong returns for our investors.”  

Dr. Imran Asghar, Etihad Shipping Chief Executive Officer, invited potential investors on private placement basis to become shareholders of the company.

'This is a remarkable opportunity as we aim to set up a powerful business and expand in the region and globally. This company has promising potential, and we strongly believe we have the capability and the experience to meet our objectives.”

The company will be involved in maritime transport of crude, oil products and dry cargoes. It aims to become the largest regional player in the shipping industry.

The main office will be located in Manama with branches across the GCC countries. -TradeArabia News Service