Kuwait's stock exchange said to plan IPO this year

Kuwait plans to sell a stake in its stock exchange this year and the Capital Markets Authority (CMA) is conducting market studies for the initial public offering (IPO) through the end of April, Bloomberg reported, citing CMA vice-chairman Mishaal Al Usaimi.

“From that (market study) we will have a very clear timeline taking us to the IPO, but we are hopeful that we will complete that by the end of the year,” Al-Usaimi said.

Kuwait was classified as an emerging market by index provider FTSE Russell in September last year.

Al-Usaimi said interest in Kuwaiti stocks remains “buoyant,” while adding that liquidity “remains an issue.”

The share sale in the Kuwaiti exchange will consist of an offering as much as 50 percent to the public and up to 24 percent to state entities, the news agency said.

The exchange has also hired a consortium led by Tri International Consulting Group to advise on selling as much as 44 percent of Boursa Kuwait to a foreign exchange operator.

Currently, the Dubai Financial Market is the only listed exchange in the GCC region, while Saudi Arabia is also said to be working towards a stake sale in Tadawul.