Floatation of Kuwaiti MTC shares begins

Published May 15th, 2001 - 02:00 GMT

The government of Kuwait will soon put its 49.2 percent holdings in the Kuwaiti Mobile Telecommunication Company (MTC) for sale, reported Al-Quds Al-Arabi newspaper.  


The Kuwaiti Investment Authority (KIA) managing director, Saleh Mubarak Al-Falah, announced on May 2 that the Authority has decided to go ahead with the privatization of 113 million shares of MTC on May 14, reported KUNA, Kuwait’s official news agency.  


In the press release announcing the KIA decision it was noted that the floatation is to last for a period of one month, closing June 11. The share’s floatation price was set at valued at 1.45 Kuwait dinars ($4.713). MTC’s current market share price stands on KD 1.8.  


The floatation period was initially expected to last only two weeks, but was extended to four, following a recommendation of the National Assembly. This move aims to allow more subscribers to join, as KIA is “keen to maintain the interests of small investors,” stated Al-Falah to the Kuwaiti daily Al-Watan. With the same goal in mind, KIA intends to accompany the sale with a large-scale advertisement campaign.  


The Kuwaiti MTC, which is listed on the Kuwaiti stock exchange, recently announced a 90 percent increase in Q1 2001 earnings, posting KD 31 million profits, according to KUNA. ― (MENA Report)

© 2001 Mena Report (www.menareport.com)

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