Boursa Kuwait Organizes Workshop To Raise Awareness Of The “premier” Market’s Continuing Obligations For Ali Al-ghanim Sons Automotive Company

As part of the company’s initiatives aimed at raising the level of knowledge and awareness of the continuing obligations of companies that want to list, Boursa Kuwait organized a workshop to discuss the commitments and obligations of companies listed in the “Premier” Market. The workshop was attended by Ali Al-Ghanim Sons Automotive Company’s Vice Chairman and Chief Executive Officer, Mr. Yousef Al-Qatami, as well as members of the company's executive and administrative management teams. 

The session included interaction from the audience to learn about the continuing obligations of the company after the listing, whether related to the executive regulations of the Capital Markets Authority or the continuing obligations related to the rules of the stock exchange. The attendees were also introduced to the automated disclosure system that should be used by the listed companies, through a live interaction on the system, in addition to addressing the share entitlements schedule and the procedures to be taken by the listed companies.

The “Premier” Market’s requirements and obligations, which include bilingual (Arabic and English) disclosures, the establishment of an investor relations department as well as quarterly analyst conferences, have made it the premier investment destination for investors from all classes. Among the “Premier” Market’s continuing obligations are the following: 

• The company must retain the required annual market capitalization greater than or equal to 78 million Kuwaiti Dinars for the total financial securities issued for two consecutive years prior to the year of assessment.
• The company must retain the required liquidity level set by Boursa Kuwait over the course of two consecutive years.
• The company must allocate a unit or department that is responsible for educating shareholders about the company's activities, financial performance and strategic directions; answering shareholder inquiries and questions; communicating with shareholders to exercise their rights to attend and vote in general assemblies; building links between the Board of Directors, Executive Management, current and potential investors and all interested parties; and making appropriate recommendations for the development of services provided to investors. 
• The company is required to publish all disclosures and announcements in Arabic and English as well as hosting one quarterly analyst meeting per fiscal year within five days of the disclosure of their annual and quarterly financials. Moreover, a company must publish the transcripts of the conference/call prior to the next trading session by a maximum of 40 minutes prior to the market opening.
• The company must not have any disciplinary actions issued against it during the two years preceding the annual review related to the suspension of trading of its securities, the suspension or revocation of its license, or the removal of all or some of its Board members or CEO.

It is worth noting that most investment products are more effective when there is more trading and liquidity on a particular stock and that most mid to large companies that enjoy high liquidity levels and continuing communication with their investors usually attract local and international institutional investors on a bigger scale. 

Boursa Kuwait aims to entice more investors to the Kuwaiti capital market through its series of Corporate Days, showcasing some of its standout listed companies and the investment opportunities that reside in the Kuwaiti capital market. Putting these companies in touch with some of the world’s leading investment firms and financial institutions, the events aim to highlight these companies’ financial health and business strategies and outlooks helping investors gain an in-depth understanding of the benefits and opportunities of investing in Kuwaiti companies.

This workshop is one of a series of workshops held by Boursa Kuwait in an effort to reinforce the importance of transparency and communication with market participants and the provision of world-class products and services, by discussing market development plans with relevant stakeholders.

Since its inception, the company has strived to develop a strong financial market with high liquidity and credibility through the implementation of a range of structural and technical developments and initiatives that will enhance the position of the exchange, regionally and globally. Boursa Kuwait continues to implement many steps in accordance with international practices and standards to transform Kuwait into a regional and global investment destination, by focusing on creating an attractive issuer base and broadening its investor base, increasing the depth and breadth of its products, as well as upgrading its infrastructure and business environment to international standards.