The Kuwaiti Capital Markets Authority submitted a study to the Minister of Trade and Industry that includes listing oil companies on the Kuwait Stock Exchange through a special mechanism through which they can benefit from their power and include them in the stock market.
According to the Kuwaiti newspaper, Al-Jarida newspaper, informed sources said that the proposed scenario includes the inclusion of oil companies, which are not classified within the natural wealth companies, which may not be allocated or sold through The government maintains its 50% share of its total capital, and privatizes the remaining part of its capital by specifying the government that takes the decision to sell a stake between 5 and 49% of its capital for the benefit of citizens through public subscription.
and stated that the ambition and desire of the Capital Markets Authority to list oil companies came as part of a preliminary study that concluded that the listing process does not need a law of its own. Rather, it is about raising a recommendation. From the company's board of directors to the board of directors of the Petroleum Corporation to approve the sale of part of its capital, and accordingly it is submitted to the Supreme Council of Planning on the basis that it is the owner of the decision of the ordinary general assembly of oil companies.
and the sources indicated that these companies are not subject to Law No. 37 of 2010 regarding the organization of privatization programs and operations, as they are subject to the provisions of the Companies Law and its implementing regulations, noting that the decision to sell a share of The capital of these companies needs to be decided by an ordinary general assembly, and it is not unusual. The share that will be determined for those who wish to go public will be offered by citizens, not by distributing it as bonus shares.
and she indicated that the offering of the share of 49%, or to be agreed upon, will be in accordance with the Companies Law, pointing out that this is a preliminary step towards encouraging the government to privatize companies Government companies, which came within the development plan projects, which were published in the Official Gazette on February 28, 2010, and then it is possible to move to fully privatizing these government companies by offering part or all of the government’s share to the private sector at a later stage.
and she said that the feasibility that the Markets Authority is looking for in listing non-producing oil companies is to give an added value to the Kuwait Stock Exchange, pointing out that the study presented does not address re-operations. Structuring these companies, given that the body preparing for the study does not have sufficient information.
She added that listing these companies in their current form will not bring any benefit to the market, and these companies will be attached to the ranks of the idle companies that represent a burden on it, and therefore the proposal to sell a share of their capital to ensure Maximizing the benefits accruing from the listing process by having liquid shares from its capital that facilitate trading in them, especially since the listing conditions on the Kuwait Stock Exchange require a minimum shareholder base, and work must be done to meet it to ensure that the desired goal is achieved.
