Fuel company IPO launched

16 December 2005
Subscription has opened to the initial public offering (IPO) of shares in Al-Sour Fuel Marketing Company, a company set up to own 40 of the service stations owned by Kuwait Petroleum Corporation (KPC). It follows the IPO of Al-Oula Fuel Marketing Company, also owning 40 outlets, earlier in 2005.

The issue is reserved for nationals, who can subscribe to a minimum of 1,000 and a maximum of 3,000 shares. On offer is 76 per cent of Al-Sour's $103 million capital, with KPC retaining the remainder. Shares are priced at KD 0.195 ($0.67). A third company to own the remaining 40 petrol stations in the country is due to be established and publicly offered in 2006.

A private placement is also due to be launched before the end of December of shares in the newly formed Zhara, set up by investors from Kuwait and elsewhere in the region to acquire hydrocarbons assets in the Middle East. HSBC and Global Investment Houseare the joint arrangers.

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