Kuwait Projects Co. to raise capital to $879mln via rights issue

The increase will be used to fund new investments and acquisitions

  
Rendering of Hessah Al Mubarak District mixed used project in Kuwait. The project has been master planned by Kuwait Projects Company (Holding). Image for illustrative purposes.

Rendering of Hessah Al Mubarak District mixed used project in Kuwait. The project has been master planned by Kuwait Projects Company (Holding). Image for illustrative purposes.

KIPCO handout via Thomson Reuters Projects

Kuwait Projects Company, (KIPCO) said it plans to raise its issued and paid-up capital to 264 million dinars ($879 million) from 200 million dinars through a rights issue.

The rights issue will be open to existing shareholders and will offer 640 million shares at a price of 125 fils per share (nominal value of 100 fils per share and the issuance premium of 25 fils).

KIPCO’s board of directors on Wednesday approved the rights issue, subject to completing procedures required by the regulatory authorities.

The capital increase will be used to fund new investments and acquisitions, the company said in a statement.

KIPCO is one the biggest holding companies in the Middle East and North Africa, with consolidated assets of $33.4 billion as of 31 March 2021.

In February, Moody’s Investors Service downgraded KIPCO’s ratings to Ba1, and maintained a negative outlook on concerns that the holding company’s cash burn would continue over the next 12-18 months because of negative free cash flows.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here

© ZAWYA 2021

More From Construction