NIC successfully executes partial exit of KD 13.3 million from Boursa Kuwait

KUWAIT: The National Investments Company (NIC) announced the partial exit of one of the company’s primary investments, Boursa Kuwait, by selling 6.5 million shares, equivalent to 3 percent of Boursa Kuwait’s capital, at a value of KD 13.3 million.

Khaled Waleed Al Falah

The company retains an influential stake in Boursa Kuwait, approximately 12.46 percent.

Khaled Waleed Al-Falah, Chairman of the Board of Directors of the National Investments Company, explained that the partial exit process of the investment is in line with the company’s precise and balanced strategy, which the Board of Directors set to maintain a cautious balance for all the company’s leading investments. The company maintains a positive outlook on the evolution of its business models.

Al-Falah confirmed that the exit process was carried out in collaboration with one of the renowned investment companies to select potential high-net-worth international investors to sell to them. This expanded Boursa Kuwait’s shareholders base to include prestigious international investment companies and funds with long-term investment plans.

“The positive results of this exit will enhance the company’s cash balances by at least KD 13 million and offset by a decrease in investments in “financial assets listed at fair value through other comprehensive income.” This step allows the company to seize distinctive investment opportunities with attractive returns that directly enhance the company’s revenues. Furthermore, these transactions resulted in a realized profit of KD 11.8 million, which was reclassified from the cumulative change of fair value to retained earnings following the relevant accounting standards and policies, noting that this transaction has no material impact on the consolidated income statement”, explained Al-Falah.

Notably, the Capital Markets Authority initiated the privatization of Boursa Kuwait in early 2019, with NIC playing a pivotal role in establishing a prominent investment consortium. This consortium, comprised of leading local companies and the Athens Stock Exchange, successfully acquired 44 percent of Boursa Kuwait for approximately KD 19 million. Additionally, the General Organization for Social Insurance Secured 6 percent, while 50 percent was allocated for public subscription to citizens.

Al-Falah stated that the restructuring and development of the business model created by the Board of Directors of Boursa Kuwait over more than three years were carried out systematically and thoughtfully. This has significantly increased revenues while controlling expenses, positively impacting the net profit. In conclusion, Al-Falah praised the role of the Capital Markets Authority in its endeavor to provide a safe and enabling regulatory environment for the development and expansion of capital markets in Kuwait and developed markets. This always has an effective and positive role that casts a shadow on the market and contributes to the development of the national economy.

He also appreciated Boursa Kuwait’s executive and administrative body, which collaborated with Kuwait Clearing Company for affluent and more straightforward procedures, significantly impacting the transaction’s completion.

The National Investments Company is one of the most vital investment companies in Kuwait and the region. Established in 1987 and listed in 1988, the company’s capital is KD 79.8 million, its assets are approximately KD 272 million, and the funds under management for the benefit of others are roughly $3.5 billion.

The company recently achieved positive results with a net profit of approximately KD 10.2 million for the parent company’s shareholders, equivalent to 12.8 fils per share, as of September 30, 2024.

With a proven track record, NIC is the preferred choice for many investors, companies, and institutions. The company’s achievements included establishing multiple successful listed companies and completing IPOs, including Ali Thunayan Al-Ghanim Company and Beyout Investment Company. NIC also acted as an investment advisor and sales agent for several distinctive deals worth hundreds of millions of dollars, including a recent education deal worth over $200 million, the largest in Kuwait’s history. The National Investments Company is also the first to issue preferential shares to one of its largest clients, with multiple listings. It also serves as a selling advisor for several unique billion deals, such as Americana, Zain, The Heavy Engineering Industries and Shipbuilding Company, and Kuwait Foundry.