Al Qabas NP: Two Qatari Companies Seek to Be Listed on Kuwait Stock Exchange

Al Qabas NP: Two Qatari Companies Seek to Be Listed on Kuwait Stock Exchange

20 November 2019

An informed source uncovered to Al Qabas newspaper that two Qatari companies of which one is a “holding”, the other is a “services” are seeking to be listed on Kuwait Stock Exchange as both companies have communicated Kuwaiti investment companies to act as their “Listing Advisor”.

The source explained that the intent of some GCC companies list on the Kuwaiti Stock Exchange is considered a positive move and an admirable indicator for the Kuwaiti Exchange ability to attract more companies from the neighboring countries following the developments took place recently in the Kuwait Exchange and its upgrade to emerging markets.

The source said that the plans by some GCC companies to access the Kuwaiti Exchange came in a result of the positive developments witnessed by the Exchange over the past few years represented in transparent and efficient trading processes which led to the upgrade to the emerging markets. A development reflected the strong, deep and flexible Kuwaiti economy. This is in addition to developing new investment tools, attracting more investments and restructuring the market to increase its competitiveness ability.

The source added that the Kuwaiti Exchange last year; had adjusted the listing rules to match with the requirements of larger government and family businesses where the Exchange had assigned specialized teams to offer the needed support, awareness and benefits of listing to this layer of firms for the purpose business sustainability in the family corporates case and exiting from huge projects in the government corporates case. The source said that the Kuwaiti Exchange is now more attractive to a wide range of companies in both local and international markets as it operates in accordance with the private sector mechanisms and that is resulted in more flexible trading. The source stated that the Kuwaiti Exchange over the past few years was distinguished for notable increased liquidity flows based on several positive findings resulted in enhanced investor confidence in the market. Most importantly, upgrading the Exchange to “FTSE Russell Emerging Markets Index” before the end of 2017 and activating that upgrade on two stages in 2018. Since then, the Kuwaiti Exchange attracted large foreign liquidities on three flows totaling KTD 1.6 billion as follows:

During 20 September 2018 session, foreign investors injected KTD 167 million (equivalent to USD 500 million) in the first stage of the upgrade. The liquidity was disbursed on the Kuwaiti stakes under FTSE umbrella based on their relative weights.

In 20 December 2018 session, and in conjunction with the second phase of the upgrade, the Exchange to FTSE Index, foreign investors injected another USD 500 million. This phase has witnessed an increase in the number of the Kuwaiti stakes joining FTSE Index by adding the “Integrated” Stake increased the number to 13 stakes.

The liquidity flew to the Kuwaiti Exchange for the third time in 14 March 2019 session to reach KTD 195 million equivalent of USD 650 million in excess of that of preceding December of 23%.