JEDDAH, 23 January 2006 — Kuwait-based private airline, National Airlines Company, Kuwait’s third airline, is offering KD35 million ($120 million) of its start-up capital in an initial public offering. The IPO began yesterday.
Originally, the IPO was supposed to run from Jan. 15 to Feb. 9, but businesses shut down for three days in mourning for the death of Kuwait’s Emir Sheikh Jaber Al-Ahmad Al-Sabah.
Kuwait Projects Company Holding (KIPCO), along with other investors, such as Hamad Al-Wazzan Group, Al-Hassawi Group and Fouad Al-Ghanem Group, formed the new airline company.
The company’s capital has been set at KD50 million ($170 million), distributed over 500 million shares at a par value of 100 Kuwaiti fils per share. KD35 million ($120 million), or 70 percent, of the capital will be tapped through public subscription. The rest of the firm’s KD50-million capital is being raised by a group of 14 private investors.
KIPCO Asset Management Company (KAMCO), the IPO’s lead underwriter, announced the launch of the public offering of 350 million shares in the airline at a price of 100 Kuwait fils per share.
KAMCO stated that this offering is available to Kuwaiti individuals and Kuwaiti companies during the subscription period from Jan. 22 until Feb. 16.
KAMCO Chairman Masoud Hayat announced earlier the appointment of KAMCO as the IPO manager and Burgan Bank as the sole selling agent for the public issue.
The government of Kuwait, by decree from the Council of Ministers, approved the granting of three commercial licenses for new Kuwaiti airlines to private sector investors.
“As a part of the Kuwait’s plans for future economic development and in order to increase the role of the private sector in Kuwait’s development, the government issued these licenses for all of limited services passenger transport (which was granted to Jazeera Airways), cargo transport and the license for passenger transport with full services, the license which was granted to Kuwait National Airlines Company,” said KAMCO’s General Manager Sadoun Al-Ali.
Al-Ali said that the company would apply for listing its shares on the Kuwait Stock Exchange after one year from its establishment and the issuing of its first financial statement, as stipulated by the commercial company laws in Kuwait and after obtaining all necessary approvals. Gary Mond, the assistant general manager of Burgan Bank stated: “The minimum subscription is 1,000 shares. Investors will be able to apply for the minimum and multiples of it up to a maximum of 100,000 shares per subscriber.”
Established in 1998, KAMCO is a member of Kuwait Projects Company Holding (KIPCO), which is among the largest holding companies in the Middle East with a regional network of companies that enjoy leading positions in their respective fields. In June 2003, KAMCO increased its share capital from KD15 million ($51 million) to KD20 million ($68 million). As of October 2003, KAMCO became listed on the Kuwait Stock Exchange. KAMCO focuses on two major activities: Asset management and financial services.