Kuwait utility gets nod for bourse listing on August 16

Shamal Az-Zour Al-Oula Power and Water Company said it received regulatory approval for its listing on Boursa Kuwait’s premier market on August 16.

The company will be the first power generation and water desalination utility and the first private-public partnership project to be listed in Kuwait, it said yesterday.

NBK Capital served as Shamal Az-Zour Al-Oula’s listing adviser.

“The listing adds diversification to the [equities] market that will attract local, regional and international investors,” the utility’s chairman Husam Al Roumi said.

“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 revenue.”

The planned listing comes after the Kuwait Authority for Partnership Projects’ offered its stake in the utility to Kuwaiti citizens.

The distribution of half of the company’s shares to Kuwaitis during the last quarter of 2019 was oversubscribed by 1.27 times and attracted interest from about 127,000 investors.

The remaining shares are owned by various public and private sector entities. About 40 per cent is held by Azour North One Holding Company, owned by a consortium comprising Engie, Sumitomo and AH Al Sagar & Brothers.

The Kuwait Investment Authority

and the Public Institution for Social Security each hold a 5 per cent stake.

“Shamal Az-Zour Al-Oula represents a unique opportunity for citizens to invest in a privately operated infrastructure project,” NBK Capital chief executive Faisal Al Hamad said.

“The company operates in the resilient utilities sector and benefits from a stable revenue outlook ... as a result of a long-term contract with Kuwait’s Ministry of Electricity and Water.”

Shamal Az-Zour Al-Oula Power and Water Company operates the Az-Zour North One power and water plant, which began commercial operations in November 2016.

The plant supplies about 10 per cent of Kuwait’s installed power capacity and 20 per cent of the country’s water desalination capacity.

Power and water produced by the company are entirely supplied to the national power and water grids operated by the Kuwait Ministry of Electricity and Water under a 40year long-term Energy Conversion and Water Purchase Agreement.

Shamal Az-Zour Al-Oula will become the first power generation and water desalination utility to be listed in Kuwait