Kuwait Real Estate Company has set terms for a rights issue aimed at raising nearly KD16m (US$52.2m) following Capital Markets Authority approval last month.

The company will issue nearly 159.7m new shares representing a 15% capital increase. Shares will be offered at nominal value of KD0.10, representing a considerable discount to its current price of KD0.395.

Shares have seen significant gains in recent months and are up nearly 64% year to date.

The record date is September 28 with rights trading and subscription beginning on September 30 and ending on October 7 and 14, respectively.

Proceeds will be used to fund financial and operational obligations and general corporate purposes.

For the first half of the year revenue rose 20.6% to KD19.8m while the company reported what it described as a “temporary dip” in net profit of 49.1% to KD5.1m due to the timing of project delivery.

As of Q2 the company’s assets stood at KD464.2m with total debt of nearly KD229.6m.

Source: IFR