The Kuwait Investment Company (KIC) posted a 75 percent net profit rise in the first nine months of 2001. From January till September-end 2001, KIC’s net profit totaled 5.772 million Kuwaiti dinars, up from KD 3.286 million during the same period the previous year, according to a Kuwait Stock Exchange (KSE) announcement. The nine-months earning per share (EPS) increased to 11.55 fils, from 6.57 fils during the same period in 2000.
KIC’s results for the third quarter alone show a net loss of KD 2.177 million and a loss per share of 4.35 fils, compared to its profit for the same period in 2000 of KD 692,050 and an earning per share of 1.38 fils.
With a paid up capital of KD 50 million, KIC (Dar Al-Istethmar) is Kuwait’s first shareholding entity specializing in investment activities covering short and long term both in the local and international markets, operating since 1961. The state-owned Kuwait Investment Authority (KIA) maintains a considerable 87 percent share in KIC.
KIC’s activities include security trading and investment, real estate investment, property rental and management, underwriting bonds and certificate of deposit issues, time deposit acceptance and placement with financial institutions, foreign exchange contracts and investment portfolio management.
In mid-1999, Finance Minister and ruling family member Shaikh Ali Al-Salem Al-Sabah was facing a parliamentary inquiry for irregularities associated with the privatization of the KIC. The sale of KIC shares had eventually been annulled on the grounds that the initial public offering (IPO) price was 19 cents lower than scheduled. Allegations that IPO prices were unnecessarily discounted were made in parliament regarding previous KIA privatizations, and underlay criticism that this is a common technique for directing quick capital gains to insiders. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
