Shamal Azzour shares available in Q1 2018
The Kuwait Authority for Partnership Projects (KAPP) said NBK Capital would manage a 50 percent offering of Shamal Azzour Al-Oula’s shares to the public, expected in first quarter of 2018. Shamal Azzour Al-Oula, Kuwait’s first and only independent power and water plant, is planning to list on Boursa Kuwait exchange once the shares have been distributed, a statement by KAPP said yesterday.
It is the first company to be launched in the framework of Kuwait’s Public-Private Partnership (PPP) Law, which requires the state to offer 50 percent of total ownership to Kuwaiti nationals via an Initial Public Offering (IPO). The PPP Law is part of a government policy to help Kuwaiti nationals to benefit from mega projects and to give the private sector a larger role in contributing to the growth of the national non-oil economy.
In addition to the 50 percent stake in the company held by Kuwaiti nationals, the government currently owns 10 percent. The remaining 40 percent is held by the operators of the plant, a private consortium comprising ENGIE (formerly GDF SUEZ), Sumitomo Corporation, and AH Al-Sagar and Brothers. The plant commenced full commercial operation in November 2016 and currently constitutes some 10 percent of Kuwait’s power output and around 20 percent of its desalinated water capacity. KAPP Director General Mutlaq Al-Sane’a described the project as a “testament to the government’s will to create real investment opportunities for Kuwaiti citizens.” He also noted its significance to “empowering (the) private sector to lead the growth of the economy.” — KUNA