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KAMCO completes advisory role in Boursa Kuwait’s privatisation

KAMCO completes advisory role in Boursa Kuwait’s privatisation
Sources revealed that the CMA will appoint two members in the board
KAMCO
KAMCO
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Mubasher: KAMCO Investment Company has successfully concluded its advisory role in the bidding process as part of the privatisation of Boursa Kuwait, according to a recent press release.

It is noteworthy that the privatisation is organised by the Capital Markets Authority (CMA) of Kuwait.

In February 2018, a consortium led by Tri-International Consulting Group (TICG), KAMCO, and Oliver Wyman was appointed by the CMA, along with ASAR – Al Ruwayeh & Partners and Al-Hossam Legal - Al-Turqi & Partners, to lead the privatisation process.

“KAMCO’s 20 years’ worth of experience in the investment field furthers our ability to succeed in such complex transactions. The firm’s wide network base, which consists of local and international players, attracted local companies to participate in the bidding process,” chief investment officer of KAMCO Khaled Fouad said.

He noted, “This phase represents the government’s support on financial and structural reforms in Kuwait, marking a historic moment for the country’s financial sector and economy. I would also like to thank the Ministry of Finance, the General Organization for Social Insurance, and Boursa Kuwait’s management for their support in the successful outcome of this landmark transaction.”

The consortium offered 237 fils per share at a total of KWD19.94 million for the 44% equity stake; a 6% stake is allocated to the Public Institution for Social Security (PIFSS) with a total amount of KWD1.25 million. This concludes the first phase, equivalent to 50% of the privatisation process.

Early on Tuesday, sources revealed that the CMA will appoint two members in the board of directors to manage Boursa Kuwait Securities Company, giving a room for the private sector to form the majority of the board, in addition to a member that represents the PIFSS, according to Al Jarida Newspaper.

The appointment of the two board members in return for the CMA’s 50% equity ownership will be until the remaining shares are offered in an initial public offering (IPO), Al Jarida added.