Today, Tuesday, the Kuwait Stock Exchange listed the shares of “Ali Al-Ghanim” and Kuwait Sons Automotive Company, as the first Gulf family car company whose shares are traded in the stock market.
The Kuwait Capital Markets Authority had earlier agreed to the prospectus (secondary offering) and to list the shares of “Ali Al-Ghanim” and Sons Automotive Company on the Kuwait Stock Exchange within the first market category.
The coalition of investment banks and IPO managers in the “Ali Al-Ghanim” & Sons Kuwaiti Automotive Company announced yesterday, Monday, the success of the company’s private placement process and the receipt of initial applications for subscription worth 1.08 billion dinars ($3.53 billion), covering nearly 11 times the value of the offering.
The alliance said, in a statement, that the subscription aimed to offer about 124.88 million shares of “Ali Al-Ghanim” and Sons Automotive Company, at a price of 793 fils per share, with a total value of up to 99 million dinars to qualified investors in order to increase the shareholder base as one of the basic requirements for listing in the first market on the Kuwait Stock Exchange.
The consortium of investment banks consists of the Kuwait National Investments Company as the main coordinator and the joint bookrunners, which included the Financial Group Company “Hermes Emirates Limited”, the “Kamco” Investment Company of Kuwait and the Kuwaiti “KFH Capital” company.
On March 16, Ali Al-Ghanim applied for listing on the Kuwait Stock Exchange, which is the first share offering by a family company in the Kuwaiti stock market in seven years.
“Ali Al-Ghanim” is among the leading commercial families in Kuwait, and their business includes automotive, construction and electronics agencies. The company also has won contracts for major government projects.
Ali Alghanim & Sons Automotive Company has a physical presence in Iraq and plans for further regional expansion.
The last family company to be listed in Kuwait was Mezzan Holding Company in June 2015.
