KUWAIT, March 17 (KUNA) -- Significant progress has been made towards creation of the New KSE Company that will lead to its privatization and Initial Public Offering, said the Incorporating committee for Kuwait Stock Exchange Company (KSE) of the Capital Markets Authority in a statement released on Saturday.

The management of the KSE continues to provide information to the advisers, mandated by the Capital Markets Authority (CMA) to prepare the KSE for the IPO. The advisers are currently working on their due diligence and analysis and valuation of the KSE assets and these results will be discussed with the CMA and the KSE management in due course. The process of allocating assets to the new company is a detailed process which has to cover technical, financial and legal due diligence.

The CMA and the Advisers are working to ensure this is done in the most appropriate manner possible in line with Law 7/2010.

Once this first phase is concluded, the legal establishment process that includes the submission to the relevant authorities for the creation of the New KSE will need to be completed.

With respect to timing of the transaction, the CMA, the Incorporating Committee and their Advisers recognize the need to fast-track the process. However, the CMA is also determined to ensure the new KSE Company is prepared to the highest standards ahead of its IPO and sale to Kuwaiti Nationals and this remains their highest priority.

Commenting on the issue, Abdullah Al Gabandi - Chairman of Incorporating Committee said: "The CMA's current focus is to ensure the company is prepared and packaged to the best standards. We want to ensure the New KSE entity is placed on a solid footing for the long term is a sustainable and profitable business and provides an exciting and attractive investment opportunity for Kuwaiti nationals who will subscribe in the IPO". The CMA will hopefully embark a new era of transparency, accountability, and justice for participants in the Kuwait Stock Exchange.

Currently, the CMA is waiting for feedback from fourteen entities on its first draft of the executive rules. The deadline for the feedback is February 15th, and by early March the CMA should have a final draft. The executive rules include 432 articles spread over 121 pages. Kuwait Capital Markets Authority was established according to a legislation passed by the Parliament in February 2010, known as Capital Markets Law (CML). It calls for regulating the Kuwait Stock Exchange (KSE), supervise public and private subscriptions, and oversee mergers and acquisitions.

In addition to organizing the activities of the securities market in a transparent manner, the authority is also tasked with forcing the listed companies to implement principles of corporate governance. Also, and as part of its awareness campaign the Capital Market is also responsible to regularly educate the public about the activities of the markets.