50% of Kuwaiti Bourse Stocks to Be Floated

The Capital Market Authority urged Kuwaiti citizens on Monday to pay their dues for their subscription in the 50 percent stake of issued and paid-up capital for the Kuwaiti bourse company as of tomorrow Tuesday until early December.

CMA Chairman Ahmad Al-Melhem said at a news conference one of the most significant and strategic projects for overhauling the Kuwaiti finance market had been accomplished, indicating at kick-off of the second and final phase of privatizing the bourse.

Privatizing the Kuwaiti bourse is an important step toward achieving the highly aspired national objectives, as outlined in the 2035 Kuwait Vision, he said, also noting that such an approach will bolster Kuwait's status as a regional financial center and grant the private sector a greater role.

The subscription is a complementary stage for privatizing the bourse, he said, noting that the CMA, last February, finalized the first stage of privatizing 44 percent of stakes of the bourse company capital. The subscription is voluntary and is solely presented for the citizens whose names are registered with the Public Authority for Civil Information (PACI) on September 8, 2019, during the set duration for payment and subscription.

Stocks have been floated equally for citizens at a rate of 70 shares for each national, with a nominal value at 100 fils per share. It is allowed to increase privatization of the stocks value of which has not been paid by other citizens, he said, explaining that the maximum number is 1,300.878 shares, one percent of the floated ones.

Meanwhile, the acting CEO at the bourse, Mohammad Al-Osaimi, affirmed the company concern for updating through measures designed to boost the market infrastructure, operating, organizing and electronic systems. He has indicated at the necessity of overhauling the market for securing new investment tools, restructuring the market to enhance its competition capacity, bolstering transparency and investors' confidence as well as luring new investments. Faisal Sarkho, the CEO at KAMCO investment company, boasted of selecting KAMCO as a subscription agent for managing and floating operations.

A marketing plan has been worked out, number of the Kuwaitis registered at PACI has been determined and the scheme has been drawn up to be in harmony of the subscription schedule, he added. For his part, Issam Al-Qooud, the deputy CEO for the operations sectors at the Kuwaiti Clearing Co., said the company had updated the subscription service employing electronic and telephone facilities.

The clearance company is seeking to turn into the main platform for all forecast subscriptions, he has disclosed. The CMA had launched the website (boursaipo.com) for subscription seekers to get acquainted with the company, payment measures and terms.

The CMA was established in 2010 according to Law 7/2010 that had been endorsed by the parliament in February the same year.