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)
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© ZAWYA 2021