With an initial coverage of nearly 11 times of the offering value
National Investments Company (NIC), in its capacity as the Global Coordinator in addition to acting as a Joint Bookrunner with EFG-Hermes UAE Ltd. (EFG Hermes), Kamco Investment Company (Kamco Invest) and KFH Capital Investment Company (KFH Capital), has announced the successful completion of the private placement process of Ali Alghanim Sons Automotive Company (Ali Alghanim Sons). This step precedes the listing of Ali Alghanim Sons, a leading Kuwaiti shareholding company comprising of a group of businesses that supply the finest international automotive brands and services.
In a press statement, representatives of the consortium have stated that the private placement was highly successful as it attracted a large number of local and international investors. It is important to note that the number of investors and the amount raised exceeded the target by several times.
The IPO aimed to offer 124,875,000 million shares of Ali Alghanim Sons at a price of 793 fils per share (with a total value of KD99 million) to eligible investors and to increase the shareholders base, one of the basic requirements for listing on Boursa Kuwait’s Premier Market. The Company received initial demand with a value of KD1.08 billion, covering nearly 11 times of the offering value.
Fahad Abdulrahman Al Mukhaizim, CEO of NIC said: “I would like to highlight the added economic value of listing of large family businesses on regional stock markets. The successful listing of Ali Alghanim Sons is a highly important milestone and this will encourage other local and regional family businesses to go public and, therefore, will create unique investment opportunities for investors, help increase liquidity, and diversify the available investment opportunities”.
“NIC has played a major role as a Global Coordinator and a Joint Bookrunner in managing subscriptions from inside and outside Kuwait, coordinating between major local and regional investment banks to execute this transaction successfully, and manage all related logistics and technical operations, in addition to our role as a listing consultant. We assisted the shareholders in executing the main phases of preparing the Company to meet the requirements to be listed on Boursa Kuwait’s Premier Market” added Al Mukhaizim.
The IPO of Ali Alghanim Sons has witnessed a large turnout by investors, the number of shares subscribed has exceeded the offering size, which reflects great confidence in the performance of the Company.
“We would like to express our appreciation to Ali Alghanim Sons for their trust in our ability to lead the entire process, and to members of the consortium of investment banks, who participated in managing the IPO process. We would also like to extend a special thanks to the Capital Markets Authority for supervising the subscription process and it’s support during the entire process; we also highly value the contribution of both Boursa Kuwait and Kuwait Clearing Company” concluded Al Mukhaizim.
Faisal Mansour Sarkhou, CEO of Kamco Invest, said: “We would like to congratulate our friends and partners at Ali Alghanim Sons for the success of this IPO, which is the first of its kind in the field of automotive in Kuwait and the region. The high demand we have seen is an indication of the Company’s positive position and perception in the local market as well as the experience and knowledge of its management and key shareholders. It also reflects the investors belief in holding shares of successful family businesses, which have promising investment opportunities. We wish them further success, progress and more achievements as a listed company”.
Mohamed Abou Samra, MD at EFG Hermes, said: “We are proud to be a part of the successful private placement for Ali Alghanim Sons, one of the leading automotive companies in Kuwait and the region. The deal confirms the unique position of EFG Hermes in the Gulf market in general and the Kuwaiti market in particular, which came after organizing a very successful investment conference in collaboration with our strategic partner Boursa Kuwait, to highlight the attractive investment opportunities within the promising Kuwaiti market”.
Abdulaziz Nasser Al Marzouq, CEO of KFH Capital, said: “The high demand witnessed reflects the desire of investors to invest in successful family businesses. Ali Alghanim Sons will be a distinct investment opportunity that will bring good returns to shareholders and add new quality to Boursa Kuwait. We are hoping that this listing will encourage other family businesses in Kuwait to follow the example of Ali Alghanim Sons. Family businesses can become a new attraction for investors as leaders of the private sector, and having them listed in the stock market will help further develop their activities and expand their businesses for the benefit of the national economy”.
“The IPO process has witnessed great cooperation and coordination by all relevant parties, which contributed to the success and completion of the offering and subscription in the best way” added Al Marzouq.
Ali Alghanim Sons is one of Kuwait’s leading listed automotive companies and an official distributor of number of international brands, with extensive experience in this field and a track record of providing different vehicle models to the Kuwaiti market. The Company has taken over a large number of products and services in the past 35 years, including heavy transport vehicles and equipment, distribution channels, maintenance and spare parts centers, car rental and inspection services, to name a few. In 2009, the Company launched its first business outside Kuwait as distributor of BMW and MINI brands in the Iraqi market and has invested in the Egyptian market in partnership with other affiliates, and operations will begin in the second half of 2022, where the partnership will be the new official distributor of BMW and MINI cars.