Kuwait bourse sale over­sub­scribed

Pri­vati­sa­tion com­plete

Arab Times - - FRONT PAGE -

KUWAIT CITY, Dec 2, (Agen­cies): The Kuwait Cap­i­tal Mar­ket Au­thor­ity (CMA) said on Mon­day the sale of its stake in the lo­cal bourse to Kuwaiti ci­ti­zens was more than 8.5 times over­sub­scribed, in the last stage of the com­pany’s pri­vati­sa­tion process.

“The CMA has now com­pleted the pri­vati­sa­tion of Boursa Kuwait,” it said. “The 50 per­cent public of­fer­ing was pre­ceded by the suc­cess­ful sale of 44 per­cent of the com­pany to strate­gic in­vestors in Fe­bru­ary 2019.”

The re­main­ing 6 per­cent is owned by Kuwait’s Public In­sti­tu­tion for So­cial Se­cu­rity, it said.

Kuwait wants to strengthen its po­si­tion as a re­gional fi­nan­cial cen­tre and give the pri­vate sec­tor a stronger role in the econ­omy.

The stake sale comes ahead of the po­ten­tial in­clu­sion in 2020 of Kuwaiti eq­ui­ties into the MSCI main emerg­ing mar­kets in­dex, a move that could trig­ger bil­lions of dol­lars of in­flows from pas­sive funds.

CMA’s Chair­man of the Board of Com­mis­sion­ers and Man­ag­ing Di­rec­tor Dr Ah­mad A. Al-Mel­hem said, “As of 1:00 pm yes­ter­day, 94 per­cent of Boursa Kuwait Se­cu­ri­ties Com­pany (BKSC) is owned by pri­vate in­vestors, while the re­main­ing 6 per­cent is owned by the Staterun pen­sion fund, the Public In­sti­tute for So­cial Se­cu­rity. As a re­sult of the suc­cess­ful clo­sure of the of­fer­ing, Boursa Kuwait has be­come the only stock ex­change op­er­a­tor in the Mid­dle East that is not owned by the State. This marks as a land­mark trans­ac­tion in the his­tory of Kuwait’s cap­i­tal mar­kets, and an im­por­tant step to­wards achiev­ing the am­bi­tious na­tional de­vel­op­ment goals set out in Kuwait’s Vi­sion 2035 with an aim to strengthen the coun­try’s po­si­tion as a re­gional fi­nan­cial cen­ter,and give the pri­vate sec­tor a stronger role and a greater op­por­tu­nity to de­velop the na­tional econ­omy”.

The public of­fer­ing of 50 per­cent of BKSC, led and man­aged by KAMCO In­vest­ment Com­pany, is the sec­ond and fi­nal phase of the pri­va­ti­za­tion process of Boursa Kuwait which fol­lowed the sale of 44 per­cent of the com­pany to strate­gic in­vestors in Fe­bru­ary 2019.

The BKSC pri­va­ti­za­tion pro­gram was man­dated by Ar­ti­cle 33 of Law No. 7 of 2010 re­gard­ing the Es­tab­lish­ment of the Cap­i­tal Mar­kets Au­thor­ity and Reg­u­lat­ing Se­cu­ri­ties Ac­tiv­i­ties and its Amend­ments and was rolled out in two phases. The first phase took place in Fe­bru­ary 2019 through an open and trans­par­ent bid­ding process, a strate­gic con­sor­tium con­sist­ing of lo­cal in­vestors and an in­ter­na­tional Se­cu­ri­ties Ex­change op­er­a­tor ac­quired a 44 per­cent stake in the com­pany. The con­sor­tium com­prised of Hel­lenic Ex­changes-Athens Stock Ex­change SA Hold­ing, Na­tional In­vest­ments Com­pany, First In­vest­ment Com­pany, and Arzan Fi­nan­cial Group. The sec­ond phase, the na­tion-wide IPO, was im­ple­mented in the last quar­ter of 2019 with the dis­tri­bu­tion of the CMA’s 50 per­cent stake in the com­pany to Kuwaiti ci­ti­zens. Upon the al­lo­ca­tion of the re­main­ing 50 per­cent of Boursa Kuwait’s shares, Boursa Kuwait will be 94 per­cent owned by ci­ti­zens and the pri­vate sec­tor, while the Kuwaiti govern­ment, through the Public In­sti­tu­tion for So­cial Se­cu­rity, owns the re­main­ing 6 per­cent.

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.