The local Al-Diyafa Holding Company (ADHC)plans to raise its capital to KD 75 million ($256.7 million) through a private placement of 740 million new shares. The company was incorporated in November with a capital of KD 1 million ($3.4 million).

The additional capital will permit the consolidation of the hospitality-related assets of its parent, Kuwait Projects Company (Kipco). The move will involve the KD 54 million ($184.8 million) acquisition of Gulf Egypt for Hotels & Tourism Companyand Bhamdoun Real Estate Company, both 100 per cent owned by Kipco, United Lebanese Real Estate Company, in which Kipco holds a 55 per cent stake, and Marina Hotel in Kuwait. Close to KD 15 million ($51.3 million) of the capital will provide equity injections for hotel developments in Cairo and Beirut. The company plans to use the remaining KD 6 million ($20.5 million) to fund other hospitality projects and is considering investments in North Africa.

The placement will be offered to institutional and high net worth individual investors across the Middle East and is expected to close in mid-February. The founders of ADHC include Kipco affiliate United Real Estate Company, which holds a 30 per cent stake, United Gulf Bankand the local Kipco Asset Management Company (Kamco), both with 20 per cent, and Wataniya Telecomand Gulf Insurance Company, both local, with 15 per cent stakes. Kamco is expected to retain a significant stake in ADHC after the placement.