NIC Facilitates Partial Exit of Boursa Kuwait Shares for International Investors

 

The transaction successfully executed 6.5 million shares, equivalent to 3% of Boursa Kuwait’s capital.

 

Khaled Al Falah:

• NIC retains an influential stake in Boursa Kuwait, approximately 12%.
• The company maintains a positive outlook on the evolution of its business models.
• We have strategically selected high-net-worth international investors to broaden Boursa Kuwait’s shareholder base.

 

The National Investments Company (NIC) announced the partial exit of one of the company’s primary investments, Boursa Kuwait, through the sale of 6.5 million shares, equivalent to 3% of Boursa Kuwait’s capital, at a value of KD13.3 million. The company retains an influential stake in Boursa Kuwait, approximately 12%.

 

Khaled Waleed Al Falah, Chairman of the Board of Directors of The National Investments Company, explained that the partial exit process of the investment is in line with the company’s precise and balanced strategy, which the Board of Directors set to maintain a cautious balance for all the company’s leading investments. The company maintains a positive outlook on the evolution of its business models.

 

Al Falah confirmed that the exit process was carried out in collaboration with one of the renowned investment companies to select potential high-net-worth international investors to sell to them. This expanded Boursa Kuwait’s shareholders base to include prestigious international investment companies and funds with long-term investment plans.

 

“This exit will enhance the company’s cash reserves by at least KD13 million, allowing it to seize distinctive investment opportunities with attractive returns that directly enhance its revenues. In addition, The Fair Value was partially adjusted from ‘Owners’ Rights’ to ‘Retained Profits,’ amounting to at least KD11 million, which will reflect positively on the company’s budget through reclassification.” Explained Al Falah.

 

Notably, the Capital Markets Authority initiated the privatization of Boursa Kuwait in early 2019, with NIC playing a pivotal role in establishing a prominent investment consortium. This consortium, comprised of leading local companies and the Athens Stock Exchange, successfully acquired 44% of Boursa Kuwait for approximately KD19 million. Additionally, the General Organization for Social Insurance Secured 6%, while 50% was allocated for public subscription to citizens.

 

Al Falah stated that the restructuring and development of the business model created by the Board of Directors of Boursa Kuwait over more than three years were carried out systematically and thoughtfully. This has significantly increased revenues while controlling expenses, which has had a positive impact on net profit.

 

To conclude, Al Falah praised the exceptional cooperation shown by CMA, which has helped facilitate the sales process. He also expressed appreciation to Boursa Kuwait’s executive and administrative body, which collaborated with Kuwait Clearing Company for affluent and more straightforward procedures, which significantly impacted the transaction’s completion.

 

The National Investments Company is one of the most vital investment companies in Kuwait and the region. Established in 1987 and listed in 1994, the company’s capital is KD80 million, its assets are approximately KD270 million, and the funds under management for the benefit of others are roughly $3.5 billion.

 

The company recently achieved positive results with a net profit of approximately KD10 million, equivalent to 12 fils per share, as of 30 September 2024.

 

With a proven track record, NIC is the preferred choice for many investors, companies, and institutions. The company’s achievements included establishing multiple successful listed companies and completing IPOs, including Ali Thunayan Al-Ghanim Company and Bayut Investment Company. NIC also acted as an investment advisor and sales agent for several distinctive deals worth hundreds of millions of dollars, including a recent education deal worth over $200 million, the largest in Kuwait’s history.

 

The National Investments Company is also the first to issue preferential shares to one of its largest clients, with multiple listings. It also serves as a selling advisor for several unique billion deals, such as Americana, Zain, The Heavy Engineering Industries and Shipbuilding Company, and Kuwait Foundry.