KIPCO – the Kuwait Projects Company (Holding) – announced the successful completion of the company’s share capital increase and the allocation of the shares to the subscribed shareholders. The Board of Directors had approved the capital increase in January, with the aim of supporting the positive growth of KIPCO’s businesses through continuing to invest in its core portfolio companies.
The rights issue saw a 17% oversubscription in the 452,748,662 new ordinary shares that were on offer, raising around KD 95.08 million in equity and representing an approximate 29.3% raise on KIPCO’s former issued share capital. KIPCO’s issued share capital now stands at KD 200 million.
The rights issue saw the participation of a wide range of KIPCO’s shareholders, including corporates, funds, portfolios and individuals. The offer price was set at 210 fils per issue share. The offering period closed on July 17.
KAMCO Investment Company acted as the issuance advisor and subscription agent.
KIPCO’s last capital increase was in 1996, and over the last 22 years the company’s businesses have been growing strongly. To support this growth, KIPCO has been investing capital in its core portfolio companies. The exercise is timely given the company’s forward-looking approach to managing its capital structure, and the cash will be used to continue to selectively invest in KIPCO’s businesses, while increasing the company’s overall financial flexibility.
Mr Faisal Al Ayyar, KIPCO’s Vice Chairman (Executive), said:
“The oversubscription in the rights issue reflects the confidence that our shareholders have in KIPCO’s performance and its long-term business strategy, and we are grateful for this trust. We would like to thank the Central Markets Authority and the regulatory agencies for facilitating this exercise, and we also appreciate greatly value the efforts of the agencies that have been rating KIPCO over the last decade.”
He added:
“Over the last two decades, we supported the growth of businesses through investing capital in our core portfolio companies, while maintaining a prudent capital structure. The cash raised through this rights issue will allow us to continue to invest in our banking, media, insurance and industrial businesses. It will also provide us with the financial flexibility to invest in emerging sectors like education in a thoughtful and disciplined way.”