The Kuwait Investment Authority (KIA) has decided to sell shares in three local companies, including mobile telecoms group Zain.
The first company to be divested, Kuwait Investment Company (KIC), will be sold via an IPO set to be completed by the end of…
The Kuwait Investment Authority (KIA) has decided to sell shares in three local companies, including mobile telecoms group Zain.
The first company to be divested, Kuwait Investment Company (KIC), will be sold via an IPO set to be completed by the end of H1 2015, Kuwait News Agency reported citing a KIA statement during a recent board meeting.
The sovereign wealth fund has decided to postpone selling its shares in Zain, in which it is the largest shareholder with a 24.6% stake, and Kuwait Finance House until a later date, according to the report.
A spokesperson for Zain declined to comment on the news, saying it is purely a KIA board decision.
Kuwait’s Capital Market Authority has reportedly approved KIA’s decision.
Meanwhile, the Kuwait Stock Exchange cancelled all trades in Zain and KIC which occurred today before suspending the stocks. Trading in both stocks will resume on Sunday, the bourse said in a statement.
Shares in Zain rose 1.6% today before the suspension of trading.
Kuwait’s largest operator, Zain has subsidiaries in eight Middle Eastern and African countries and has been looking to expand its presence in the North African market. The group recently raised BD9.12m (US$24.12m) from the sale of a 15% stake in its Bahraini unit on the local bourse.
Al-Kahir National Company has a 16.26% stake in Zain, 9.83% are treasury shares and 49.67% are publically traded.
The operator has an authorised share capital of KD432.7m (US$1.5bn) on the Kuwaiti bourse. It reported revenues of KD627m (US$2.23bn) for H1 2014 and EBITDA of KD265m (US$943m).
KIA said it would continue to support the local market by reinvesting proceeds from upcoming IPOs in new investment funds and products, according to the news agency report.
