Shamal Az-Zour Al-Oula Power & Water Company to debut on Boursa Kuwait
Kuwait’s first Public-Private Partnership project
KUWAIT: Shamal Az-Zour Al-Oula Power and Water Company KSCP announced that it received approval to list on Boursa Kuwait’s Premier Market on 16 August 2020. The first power generation and water desalination company and the first Private Public Partnership (PPP) project to be listed in Kuwait. NBK Capital is the listing advisor.
Shamal Az-Zour Al-Oula Chairman Husam Abdullah Al Roumi said: “We are happy to announce this historic milestone in the Kuwaiti power sector and the capital markets in the region. The listing adds diversification to the market that will attract local, regional and international investors, it is a testament to the strength of the private sector and its ability to take the initiative for economic development and increasing non-oil revenues. I would like to thank our shareholders, our founders, and the citizens of Kuwait for making this milestone possible.”
NBK Capital CEO Faisal Abdullatif Al-Hamad said, “Shamal Az-Zour Al-Oula represents a unique opportunity for citizens to invest in a privately-operated infrastructure project. The company operates in the resilient utilities sector, and benefits from a stable revenue outlook (as indicated in the public offering’s informational memorandum) as a result of a long-term contract with Kuwait’s Ministry of Electricity and Water.”
“NBK Capital is proud to be associated with this mega project, from leading the consortium that advised on the company’s public offering in Q4 of 2019 to acting as the company’s listing advisor,” Hamad said. The listing follows the successful distribution of 50 percent of the Company’s total shares to Kuwaiti citizens during the last quarter of 2019, which was oversubscribed by 1.27x and attracted close to 127,000 investors.
The remaining 50 percent of shares are owned by different public and private entities as follows: 40 percent is owned by a private investor, represented by Azour North One Holding Company KSCC, which is owned by a consortium comprising ENGIE Sumitomo Corporation, AH Al-Sagar and Brothers; and 10 percent is owned by the Kuwait Investment Authority and the Public Institution for Social Security, each with a five percent ownership.
Shamal Az-Zour Al-Oula Power and Water Company KSCP. is Kuwait’s first company established under the Independent Water and Power Plant (“IWPP”) Law. The Company operates the Az-Zour North One Power and Water Plant, which commenced commercial operations in November 2016. The plant supplies about 10 percent of Kuwait’s installed power capacity and 20 percent of Kuwait’s water desalination capacity. Power and water produced by the company are entirely supplied to the national power and water grid operated by the Kuwait Ministry of Electricity and Water under a 40-year long-term Energy Conversion and Water Purchase Agreement (“ECWPA”).