MANAMA – Aluminium Bahrain, the second-largest aluminum smelter in the Middle East, is planning to cross-list its shares in Saudi Arabia, according to four people familiar with the matter. Aluminium Bahrain, also known as Alba, is seeking to improve its valuation rather than raise money from the listing, the people said, asking not be identified as the plan isn't public. Alba has a primary listing in Bahrain with its global depository receipts trading in London. The metals producer is hoping to capitalize on investor interest in Saudi Arabia as the biggest Arab stock exchange opens to direct foreign investment for the first time in 2015. The Saudi Tadawul benchmark index gained 30 per cent this year and is the sixth best performing stock index in the world, according to data. The compares to a 17 per cent advance for the Bahrain Bourse All Share Index. "Alba is trading at a discount compared to its global peers even as aluminum prices are improving," said Nitin Garg, senior analyst at Securities and Investment, in Bahrain. "This is partly because of the low liquidity in the stock." Alba raised $339 million in 2010 by selling shares at the low end of its price range, with the stock dropping 45 percent since their listing. Bahrain sovereign wealth fund Mumtalakat owns 69 percent of Alba, while Saudi Basic Industries Corporation (SABIC) holds about 21 percent, according to data. An Alba spokeswoman in Manama, Bahrain, declined to comment when contacted on Sunday by phone. The shares have declined 6 percent this year, compared to a 57 percent advance for Alcoa, the largest United States aluminum producer. — Agencies
