Mubasher: The number of Kuwaiti subscribers for Shamal Az Zour Al Oula Power and Water Company’s initial public offering (IPO) has reached 24,000 or a rate of 167 subscribers per hour until Sunday, 6 October.

The IPO offering was oversubscribed by 17% since it was first launched on 1 October, according to a recent press release, citing NBK Capital, the advisor and offering manager for the IPO. Shamal Az Zour Al Oula is the first privately owned plant for power generation and water desalination in Kuwait.

Launched in November 2016, the company contributed 10% of the current total energy production capacity and 20% of the current water desalination production capacity.

It is worth pinpointing that during the fiscal year ended on 31 December 2018, Shamal Az Zour’s profits exceeded KWD 12 million, while total retained earnings registered KWD 30.7 million meanwhile.

The company shall not distribute any dividends to the shareholders before transferring the shares to Kuwaiti citizens.

The public subscription period should last from 1 October 2019 to 29 November 2019. It is mandated by Kuwait’s Public Private Partnership (PPP) legal framework, which requires the state to offer 50% of the total ownership of PPP projects to Kuwaiti citizens through a public offering.

The minimum subscription value is 387 shares with a nominal value of 100 fils each, while the maximum subscription value is 20,000 shares with a nominal value of 100 fils per share.