- The country’s largest subscription on record for public and private companies reflects investors’ trust in Alghanim & Son’s Automotive
Kuwait: Boursa Kuwait witnessed today the listing of Alghanim & Sons Automotive Company K.S.C.C, marking a historical milestone as the first family-owned company for automotive agents to be listed on an exchange across the gulf markets. The company stated that the public offering which took place a few days prior was over-subscribed approximately eleven times, mirroring investors’ trust, considering the high demand during the subscription process on 45% of the company’s shares.
The company’s decision to be listed on the stock market was made in line with the forward-looking approach to the current global market trends and the positive outlook for the near future. It also supports the company’s vision to expand investment horizons, specifically in terms of faltering family-owned companies on both regional and international levels, as it reaches the third generation, where majority of economic indicators show that public share-holding companies will dominate the investment scene in the near future.
The company also stated that the official listing on the Kuwait bourse stems from its sense of responsibility as a leading company in the region in general, and in Kuwait specifically, which aims at adopting the principles of transparency and governance. It also seeks to expand its scope of work, which will contribute to creating unique employment opportunities for youth, while deploying the company’s considerable capabilities and exceptional cadres that represent a further driving force enabling it to fulfil its stated objectives.
Eng. Fahad Ali Al Ghanim, Chairman of Ali Alghanim Sons Automotive Company, emphasized in commentary on the listing on the exchange, stating that the outstanding demand of local and foreign investors witnessed during the subscription process clearly demonstrates their deep-rooted trust in the company. This in turn, poses a substantial responsibility on Ali Alghanim Sons Automotive Company to ensure stakeholder needs are diligently met. “We take pride in being the first family-owned gulf automotive company to be listed on one of the region’s leading stock exchange’s and we hope to see other family companies follow suit, as we strongly believe in the added value and true benefits it brings to the national economies”, Alghanim added.
Alghanim attributed the reasons behind taking this step to the challenges faced by family-owned companies worldwide, clarifying that key indicators show that around 70%-80% percent of family-owned companies on an international level are collapsing and faltering as they reach the third generation, as well as being subject to several issues as a result to the succession of generations and diversity of viewpoints. Accordingly, we found it prudent to make use of these experiences and list the company on Boursa Kuwait, taking into account the fact that listed companies enjoy a high level of transparency and governance. This supports the business’ plans to expand inside and outside of Kuwait, and eventually increasing revenues and profits.
Alghanim Sons Automotive is the official agent for “BMW”, “Land Rover”, “Rolls-Royce”, McLaren”, “Geely”, and “Great Wall Motors” in Kuwait, in addition to owning renowned international agencies in the fields of oil, batteries, and tires. The company is also a key shareholder in both “BMW & Mini” in Iraq and Egypt.