Subscription was launched on 14 September to the initial public offering (IPO) of shares in Kuwait China Investment Company (KCIC). KCIC was established in June with the objective of facilitating investments in China and other East Asian countries. The company intends to list on the Kuwait Stock Exchange after the mandatory one-year period.
On offer - to local investors only - are 400 million shares priced at a nominal value of KD 0.1 ($0.34) each, equivalent to 50 per cent of KCIC's KD 80 million ($276 million) capital, with a subscription fee of KD 0.005 ($0.017). Investors will have an option to purchase a minimum of 1,000-9,000 shares in multiples of 1,000; 10,000-90,000 shares in multiples of 10,000; and 100,000-1 million shares in multiples of 100,000. The issue closes on 29 September. The sole lead manager on the offering is the local National Investments Company (NIC), which itself holds a 19 per cent stake in KCIC. National Bank of Kuwaitis the lead selling agent, while other selling agents include Gulf Bank, Commercial Bank of Kuwait, Bank of Kuwait & the Middle East (BKME), Bank of Bahrain & Kuwaitand Kuwait Finance House. A private placement in the remaining 50 per cent of the company's shares took place earlier in the summer. Major institutional investors in KCIC include NIC and the Kuwait Investment Authority (KIA), which holds a 15 per cent stake.
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