Title: CMA Signs a Contract for “Transaction Advisory Services for Boursa Kuwait Plan, Process, Qualification, Readiness, Bidding, Award, and Timing”

Pursuant to the decision of CMA Board of Commissioners of awarding tender No. (CMA / PROC /11/2017) to Tri International Consulting Group (TICG), the CMA and TICG have signed today a contract to provide advisory services for bidding a share in the capital of Boursa Kuwait. TICG is (60%) owned by Kuwait Investment Authority, and (30%) by Oliver Wyman and (10%) by Kuwait Fund for Arab Economic Development. TICG also leads an ally with the membership of KAMCO and Oliver Wyman, as well as local and international law firms.

This event is a key stage in the privatization of Boursa Kuwait, in response to the regulator’s desire that Kuwait Stock Exchange becomes a shareholding company, whose shares are distributed as follows:

1. Not less than 6% and not more than 24% shall be allocated for public entities which have the right of owning shares. Any unsubscribed shares will be referred to the winning bidder.
2. Not less than 26% and not more than 44% shall be allocated for companies listed on KSE in conjunction with international securities exchange operator, or for an international securities exchange operator acting solely. The CMA shall establish rules and conditions concerning bidders and the bid process. Shares shall be sold to whoever submits the highest price in excess of its par value and incorporation expenses – if any.
3. 50% of the shares shall be publicly offered for all citizens.

The advisory services will focus on the share allocated for bidding i.e. the share allocated to listed companies with an international securities exchange operator or an international securities exchange acting solely. One of the most important services that will be provided by the consultant is that it will provide the necessary technical support to the CMA for the following tasks:

1. Determine the requirements and qualification standards for the international securities operator who is entitled to bid on the shares offered in the auction.
2. Determine the requirements and qualification standards for listed companies in the stock exchange, which are entitled to bid on the shares offered in the auction.
3. Preparing the stock exchange for bidding.
4. Preparing a promotional campaign and meetings with potential investors.
5. Execution and termination of the auction.

This project is the result of the efforts exerted by the CMA in the development of the capital market and an important station to complete the process of privatizing Kuwait Stock Exchange. Previously, Kuwait Stock Exchange was established and authorized to manage all material and intellectual assets of Kuwait Stock Exchange and to undertake the administrative and financial functions required for administrating the Exchange’s entity. After the completion of the process of passing and receiving the tasks from Kuwait Stock Exchange under the supervision of the CMA, leading to the cancellation of the license of Kuwait Stock Exchange and the end of implementing the decree issued on August 14, 1983 regarding Regulating Kuwait Stock Exchange and licensing Boursa Kuwait.

The Board of Commissioners has formed a committee to issue and license shares of the capital of Boursa Kuwait directed by the Capital Markets Authority and the membership of Kuwait Investment Authority and Boursa Kuwait. The committee is responsible for submitting the necessary proposals for the privatization of Boursa Kuwait and following up the privatization process under the supervision of the Board of Commissioners.

The Board of Commissioners will then decide on the conditions of the bidding and the bidders and the date of the auction. The date will also be set for allocating the shares of the public entities and for the citizens.

Ends
 
Notes to Editors
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance Regulations, and protect investors from unfair practices which violate the Authority's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority also aims to provide awareness programs related to securities activities.

For further information, please contact:
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