KAMCO announced Tuesday the launch of a private placement of up to 12 million shares in Hayat Communications Company KSC (closed) (the “Company” or “Hayat Communications”) prior to its listing on the Kuwait Stock Exchange at a selling price of 770 fils per share.
Established in 1997, Hayat Communications has built a solid operating track record in providing cost effective engineering solutions to telecommunication operators on a turnkey basis.
The company’s business model focuses on generating profitable revenue by providing infrastructure and installation support to mobile telecom operators on a turn-key basis. It currently has operations in Kuwait, Algeria, Tunisia, UAE, India and Pakistan, and it is targeting mobile telecom infrastructure markets in Saudi Arabia, Iraq, Oman, Qatar and Iran.
During 2005, Hayat Communications completed contracts worth KD 13.72 million and, as of 31 December 2005, it had KD 17.19 million of awarded contracts in hand. Unaudited figures at the end of 2005 show assets of KD 8.45 million and revenues and net profit of KD 8.45 million and KD 3 million respectively.
Hayat Communications has recently undergone a legal transformation to a closed shareholding company with a share capital of KD 3 million or 30 million shares of 100 Fils/Share Nominal, with equity of around KD 6 million (unaudited) at the end of 2005.
Subject to fulfilling KSE listing requirements, the company expects to be in a position to list on the Kuwait Stock Exchange during the first half of 2006. The private placement is intended to close by 21st February, 2006, and is open to invited potential investors only.
Hayat Communications chairman Alaa Hayat commented: “Under the direction of Mr. Mahinder Malhotra, managing director and CEO, the company has built a strong reputation in the telecommunications sector. It has eight years of continuous growth and has attracted skilled engineers to its staff to ensure that mobile telecom operators receive first class technical infrastructure and installation support.”
KAMCO chairman Masaud Hayat believes that the private placement will receive positive attention from the market. He said: “Hayat Communications has a solid track record, while greater market liberalization in the MENA telecommunications sector offers significant opportunities for the company across the region.”
The terms and conditions of the private placement are published in the Private Placement Memorandum dated January 2006.
KAMCO, a subsidiary of Kuwait Projects Company’s (KIPCO) investment banking subsidiary United Gulf Bank (UGB), has assets of more than US$ 5.0 billion under management or control, a portfolio of some 510 companies and individuals, and more than 120 employees throughout its operations.
KAMCO is a dynamic force in the Kuwaiti financial marketplace with extensive experience in corporate finance, having arranged successful private placement and KSE listing of five companies during the last two years.
