Fourteen companies were informed of the qualified operators and the opening of the virtual information room
CMA is considering an appropriate initial price ... to privatize Boursa Kuwait
Sources revealed that the Capital Markets Authority (CMA) is considering the appropriate initial price for Boursa Kuwait privatization, indicating that the bids will be submitted through sealed envelopes.
Sources explained that the winning bid must exceed the predetermined price set by CMA, as the highest bidder will be awarded the tendered stake.
CMA has informed 14 local companies that expressed their interest to bid for 26-44% interest in Boursa Kuwait of the technically qualitied international companies, following the thorough and transparent examination of the submitted files, completed with the utmost accuracy and transparency by the competent committee, the sources added.
In the meantime, CMA has also advised international operators (Athens Stock Exchange and Bourse de Madrid) the names of local companies and their respective information to facilitate their alliances and establishing consortiums between interested parties.
The sources pointed out that the virtual information room is currently open to qualified international entities and local companies that have expressed their interest, pointing out that the next step is for competing consortiums to submit their sealed envelopes as part of the bidding process.
Boursa Kuwait’s Board of Directors has recently issued a recommendation to amend Article (8) of the Memorandum of Incorporation and Article (5) of the Articles of Association to reflect the following:: «The Company’s authorized capital was set at KWD 60 million, divided into 600 million shares. The issued capital was set at KWD 19.21 million, divided into 191.21 million shares, all of which are cash shares ». It is expected that the IPO would be inclusive of all authorized share capital.
Sources also confirmed that the technical qualification of the global operators was done in all fairness and as per the best professional standards in light of the clear consensus of interested parties to examine each file, without identifying the other parties of the consortium.
As per the timeline set by CMA, the deadline to register in the tender process is 22 November, followed by the tenders submission period to bid on a share in Boursa Kuwait’s capital from 10 to 13 December.
"CMA is seeking to finalize the tender award to the winning consortium offering the highest price as per the set criteria before the end of December," the sources said. "Any change in dates, procedures or conditions will be at the discretion of CMA Commissioners”.
As for the qualifying criteria, the sources revealed that the bidder should be a Kuwaiti company listed on Boursa Kuwait and was locally incorporated, noting that this condition should be met on the submission date of the expression of interest, tender registration and bidding date.
The company must be listed in the premier or the main market at the time of submission. That condition applies to companies, banks, investment companies and financing companies registered by CMA and the Central Bank of Kuwait.
مصدر الخبر: Alraimedia