Kuwait Health Assurance Company (KHAC) has received a bid from local logistics company Agility for a 26 per cent stake.

KHAC, which is still under establishment was founded by the Kuwait Investment Authority (KIA), as part of the country’s KD37bn ($134bn) five-year economic plan to manage the healthcare needs of expatriates in the country

“Two bidders showed interest by submitting envelopes with bid bonds worth KD10m. However, on the day of the bid only Agility submitted the envelope with the bid price,” says Mishari al-Musallam, investment analyst at Kuwait Investment Authority (KIA).

The other bidder was an investment consortium lead by holding company Kuwait Projects Company (Kipco).

“As Agility is the only bidder, the KHAC establishing committee seems them fit as eligible winners from a technical and legal stand point. However, a recommendation will be sent to the Council of Ministers via the Minister of Finance to formally approve Agility as the strategic investor of KHAC,” says Al-Musallam.

The government will retain a 24 per cent stake in KHAC and the remaining 50 per cent will be offered to Kuwait nationals in an initial public offering (IPO). The IPO had initially been planned for September this year, but this has been delayed.

“It is highly unlikely that the IPO goes through before the end of the year,” says Al-Musallam.

With a total capital of KD318m, it is expected to be the largest IPO in Kuwait’s history.