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National Investments Company sells $43 million stake in Boursa Kuwait

NIC sold 6.5 million shares, representing a 3.2% stake in Boursa Kuwait

Published: Thu 21 Nov 2024, 6:54 PM

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Portraits of Emir Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah (R) and Crown Prince Meshal Al-Ahmad Al-Jaber Al-Sabah hang at Boursa Kuwait, Kuwait stock exchange, in Kuwait City on August 15, 2023. (Photo by YASSER AL-ZAYYAT / AFP)

Portraits of Emir Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah (R) and Crown Prince Meshal Al-Ahmad Al-Jaber Al-Sabah hang at Boursa Kuwait, Kuwait stock exchange, in Kuwait City on August 15, 2023. (Photo by YASSER AL-ZAYYAT / AFP)

National Investments Company, Kuwait’s market leading investment bank, on Thursday announced the successful divestment of a 3.2 per cent stake in Boursa Kuwait, the national stock exchange operator.

The sale amounts to $43 million and was executed through an accelerated book build in collaboration with EFG Hermes. Following the transaction, NIC retains a significant 12.5 per cent shareholding in Boursa Kuwait, reaffirming its confidence in the exchange’s robust business model and promising growth trajectory.

Khaled Al Falah, chairman of the board of directors of NIC, commented: “This divestment is a testament to our dynamic investment strategy and disciplined risk management approach. We are immensely optimistic about Boursa Kuwait’s evolution and prospects, guided by its management team. The proceeds from this transaction strengthens our financial position and prepares us for strategic investment opportunities, particularly as we accelerate our regional expansion into the Saudi Arabia and the UAE.” Al Falah added: “By selectively introducing renowned international hedge funds and institutional investors into Boursa Kuwait’s shareholder base, we are enhancing the exchange’s global profile and fostering a more diversified investor community.”

NIC has been instrumental in Boursa Kuwait’s transformation journey. The Capital Markets Authority initiated the privatisation of Boursa Kuwait in early 2019, with NIC leading a prominent investment consortium. This consortium, comprised of leading local companies and the Athens Stock Exchange, successfully acquired a 44 per cent stake of Boursa Kuwait for approximately $62 million.

Since the acquisition, Boursa Kuwait has undergone significant restructuring and development initiatives, resulting in heightened trading volumes and enhanced operating margins. These efforts have solidified its status as a key financial hub in the region.

Al Falah expressed deep appreciation for the Capital Markets Authority‘s role in cultivating a secure and progressive regulatory environment conducive to the growth of Kuwait’s capital markets. He also lauded the management of Boursa Kuwait in ensuring the seamless execution of the transaction.



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