JEDDAH, 26 March 2005 — The Kuwait Projects Company (KIPCO) has confirmed that its portfolio company, Showtime Arabia, is considering an initial public offering (IPO) of shares.
Shares in KIPCO were halted late last week for about 30 minutes when the Kuwait Stock Exchange asked for clarification over market rumors that the company will announce the Showtime IPO.
Showtime, a satellite pay-TV network in the Middle East and North Africa, has hired Morgan Stanley and Goldman Sachs for an initial public offering which could value it at up to $2 billion, sources familiar with the matter said.
Showtime, a joint venture between US media group Viacom and KIPCO, is set to be listed by the end of this year, they said. It may list in Dubai or Bahrain, one source said.
However, under the securities laws in some markets in which Showtime Arabia may ultimately offer shares, KIPCO is unable to release information about an IPO of Showtime Arabia shares until an official launch of the financial transaction.
KIPCO has been advised by its legal counsel that it is not in a position to name the prospective underwriters of the transaction, the amount of securities that may be sold, the price at which they may be sold, the stock exchanges on which Showtime Arabia may be listed, and other specific information relating to an IPO. There is no assurance that the potential public offering will be completed and, if completed, on what terms or when it would be completed.
KIPCO has also been advised that further comment on the possibility of an IPO of Showtime Arabia shares could have a detrimental impact on Showtime Arabia’s ability to carry out such an offering and could expose KIPCO and Showtime Arabia to legal liabilities.
Accordingly, KIPCO and Showtime Arabia do not intend to comment further on the matter.
KIPCO, the largest private company in Kuwait with $10 billion under management or control, has a portfolio of some 70 companies with major activities in financial services, media & telecommunications, management & advisory services, real estate and industry throughout the Middle East and North Africa. They include Kuwait-based blue chips National Mobile Telecom Co., Burgan Bank and Gulf Insurance Co.
KIPCO’s high-flying shares ended up 5 fils at 315 fils on Wednesday, the end of the trading week in the Gulf state. The stock was the most actively traded issue, with more than 49 million shares changing hands that day.