FAQ

Bahrain Investment Market (BIM) is an innovative equity market that is designed to enable fast-growing companies in the Kingdom of Bahrain, the GCC and wider MENA region to obtain growth capital via direct offering. It offers a more relaxed regulatory framework with easier disclosure and minimal admission requirements, as well as support and guidance provided through specialized advisory firms.

Investing and trading in Bahrain Investment Market (BIM) companies is open to investors and traders from all nationalities without any restrictions.

BIM rules are approved by the Central Bank of Bahrain and the market is operated by Bahrain Bourse.

There are two main audiences for Bahrain Investment Market.

The first is businesses and entrepreneurs in the GCC and wider MENA region who need capital to further grow and expand, such as fast-growing entrepreneurial ventures and mature family-owned businesses.

The second target audience is specialized advisory firms, referred to as "Sponsors", whose role is to provide assistance and guidance to companies to fulfill the admission and disclosure requirements of Bahrain Investment Market.

In terms of companies, the sectors which Bahrain Investment Market (BIM) targets include:

• Information, Communication and Technology (ICT)
• Manufacturing
• Tourism & Leisure
• Real Estate
• Food and Beverage
• Logistics
• Medical
• Services
• Education

As for the Sponsors, these include specialized professional advisory and consultancy firms that have corporate finance advisory experience.

Listing on Bahrain Investment Market (BIM) benefits both the companies and the Sponsors (specialized advisory firms) in a number of ways.

For the companies, the Bahrain Investment Market provides an innovative and cost-effective financing option for growing companies. It offers more relaxed regulations and minimal entry and capital requirements and faster approval process compared to the Mainboard market.

Other important benefits include an enhanced financial status and profile, access to professional advice and guidance from an authorized list of Sponsors (specialized advisory firms), higher brand recognition, and an easier path to potentially transfer to the Mainboard market.

For Sponsors (specialized advisory firms), the benefits include being associated and authorized by a licensed exchange with minimal costs, as well as access to dynamic companies that offer new and continuous revenue streams.

Bahrain Investment Market (BIM) has a dedicated helpdesk to answer all queries from companies, Sponsors, and investors. Once a company appoints a Sponsor (specialized advisory firm), the Sponsor should become the first point of contact.

The helpdesk can be reached by either calling (+973) 17 261 260 or emailing [email protected]. Full contact details are available in the Bahrain Investment Market brochure or Bahrain Bourse website www.bahrainbourse.com.

If the application meets the requirements outlined by Bahrain Investment Market (BIM), then the eligibility to list can be obtained within 30 days and listing to be completed upon fulfilling the remaining requirements.

The Bahrain Investment Market is open to all companies in the GCC and MENA region. However, interested companies must be established as or converted to a Closed Shareholding Company in the Kingdom of Bahrain or its equivalent in its respective jurisdiction.

The Bahrain Bourse has made a concerted effort to simplify and streamline the application process for the Bahrain Investment Market. As it stands, companies can get listed in just a few steps.

Interested companies discuss their requirements and objectives with BHB. BHB answers the preliminary questions and provides guidance on the most appropriate route, as well as connect the interested companies with the authorized Sponsors (specialized advisory firms).

The company appoints a sponsor (specialized advisory firm) who will be responsible for the admission process, including submission of necessary paperwork, follow-up with BHB, and ensuring adherence to the compliance obligations once listed.

With the help of the authorized sponsor (specialized advisory firm), the due diligence process is carried out and preparation of the necessary paperwork for BHB is conducted and submitted.

Approval is provided for the applicant company for Direct Public Offering (if applicable) or listing only after all required documents are submitted.

The Listing Applicant invites applications to subscribe for purchase of the stocks. The Direct Public Offering must be kept open for at least 10 trading days. The Listing Applicant then announces the outcome once the Direct Public Offering period closes as well as other required information.

After completing the Direct Public Offering process (if applicable), the Sponsor (specialized advisory firm) must submit to BHB the information required by BIM rules, which includes confirmation of the following:

• Issuance and depositing of shares in Bahrain Bourse's Central Securities Depository.
• Number of shareholders
• Number of issued share capital available for trading
• List of the Directors and Substantial Shareholders and their respective shareholdings

A company must remain listed on the Bahrain Investment Market for at least 6 months, after which it can apply to move to the Mainboard subject to meeting the eligibility criteria.

Getting listed on the Bahrain Investment Market was made to be affordable for the companies that meet the eligibility criteria.

There is an initial one-time fee of BD 1,000 upon listing. After listing, the company must pay an annual cost of 0.3% of its paid-up capital as long as it is listed on the Bahrain Investment Market, with a minimum of BD 1,000 and a maximum of BD 6,000.

Sponsors (specialized advisory firm) will be liable for an annual fee of BD 2,000 in order to be able to be authorized on Bahrain Investment Market. The cost of engaging Sponsors (specialized advisory firm) both pre-listing and post-listing will be covered by Tamkeen through a customized program will be created solely for this purpose.

There are certain requirements that must be met. For example, the company is obligated to retain a Sponsor (specialized advisory firm) for a period of 3 years and the agreement between them should include the minimum terms outlined by the BIM rules. Should this agreement be terminated at any stage in time, the Sponsor (specialized advisory firm) is required to notify Bahrain Bourse as outlined by BIM rules.

Should any issues arise during the obligatory 3-year contract period with the Sponsor (specialized advisory firm) and both parties choose to terminate the agreement, the Sponsor (specialized advisory firm) is required to notify Bahrain Bourse as outlined by BIM rules. If the company terminates its agreement with the Sponsor (specialized advisory firm), a new Sponsor (specialized advisory firm) must be appointed in its place as required by BIM.

Any investors around the world interested in investing in the companies listed on Bahrain Investment Market (BIM) may do so. However, the company's owner is required to retain at least 30% of the shares while it is listed on the Bahrain Investment Market.

Like any equity market around the world, the risk of a stock not performing as well as expected is always there, but so is the reward of a stock outperforming expectations. As an equity market designed specifically to cater to fast-growing companies, the Bahrain Investment Market “risk- and-reward” is inherently higher.

First of all, Bahrain has a robust regulatory framework for its financial sector that ranks amongst the very best in the world. Secondly, the listed companies must appoint a Sponsor (specialized advisory firm) to ensure adherence to the admission and disclosure requirements outlined by the BIM rules. Thirdly, the listed companies are required to submit audited annual financial accounts and half-yearly review of accounts done according to accepted global standards such as IFRS & AAOIFI.

The listed companies are required to adhere to predetermined financial disclosure terms. These include submission of audited annual financial accounts and half-yearly review of accounts done according to accepted global standards such as IFRS & AAOIFI.

Furthermore, all companies are required to abide by the Central Bank of Bahrain’s Disclosure Standards, which will ultimately provide the investors with full transparency within the market.

To become a Sponsor (specialized advisory firm), the applicant must first submit to Bahrain Bourse the completed Sponsor's (specialized advisory firms Application Form and pay the required annual fees. Once submitted, Bahrain Bourse will review and verify the information contained in the application. This process may require the applicant to provide additional information or documents, as well as the Bahrain Bourse contacting other regulatory authorities or third parties in order to ensure accuracy of the application.