Mubasher: Kuwait’s Capital Markets Authority (CMA) announced the launch of the public offering for its full 50% stake in Boursa Kuwait Securities Company on Tuesday, 1 October.
Upon completion of the offering, Boursa Kuwait shall become the only stock exchange across GCC that is mostly owned by the private sector; as private investors, whether corporates or individuals, will own 94% of the bourse, according to a press release on Monday.
Following the 44% sale of the bourse to a strategic consortium in February 2019, the CMA’s public offering transaction marks the second and final phase of the privatisation process of Boursa Kuwait. The transaction is also deemed as a milestone towards the ambitious national development goals of Kuwait Vision 2035.
The subscription period of the public offering will last for two months from 1 October to 1 December 2019. Only Kuwaiti citizens will be eligible to the CMA’s 50% stake in Boursa Kuwait. Additionally, the offering price is 100 fils per share.
In this regard, the CMA’s chairman of the Board of Commissioners and managing director Ahmad Al Melhem remarked that the mentioned transaction aims to ‘’strengthen the country’s position as a regional financial centre and give the private sector a stronger role and a greater opportunity to develop the national economy.’’
He further commented that ‘’This move not only validates Kuwait’s reform policy but also reflects the CMA’s commitment to upgrade the Kuwaiti capital markets and its core drivers.’’
In 2014, Boursa Kuwait was founded by the CMA’s Board of Commissioners to replace the Kuwait Stock Exchange (KSE). Since then, the CMA was committed to transfer the company into a ‘’leading regional exchange’’ through adopting the best global practices and structures.
Hence, the transformation programme introduced reforms to ‘’increase competitiveness and liquidity, reinforce transparency and management, elevate investor confidence, and attract international, regional, and domestic investments.’’
Consequent to the successful implementation of such reforms, Boursa Kuwait was upgraded to emerging market status by leading global indices, including ‘’FTSE Russell Emerging Markets Index (FTSE) in September 2017, and S&P Dow Jones Global Benchmark Indices with an emerging market classification in December 2018.’’
