Kuwait Projects Company (Kipco) said it plans to raise its issued and paid-up capital to KD264 million ($876 million) from the present KD200 million ($663 million) through a rights issue.

 

The rights issue will be open to existing shareholders, offering 640 million shares at a price of 125 fils per share (including the nominal value of 100 fils per share and the issuance premium of 25 fils), said a statement from Kipco.

 

The announcement came from the Kuwait group following a meeting of board of directors where the approval was given for the rights issue, subject to completing procedures required by the regulatory authorities. 

 

"As our core businesses continue to grow through new investments and acquisitions, Kipco seeks to support this by raising its own capital. Subject to business requirements, our financial services’ businesses will be completing rights issues this year after obtaining regulatory approvals," said its Vice Chairman (Executive) Faisal Al Ayyar.

 

The Kuwaiti company had in May announced an operating profit of KD15.4 million for the first three months with the Covid-19 pandemic impacting the group’s core businesses, as second waves hit different parts of the world. 

 

It had reported a net loss of KD8.4 million in the first quarter, as a consequence of the situation that the local and international business communities are facing.

 

Al Ayyar said Kipco’s capital increase will ensure the healthy growth of its core companies and will contribute to maintaining a balanced capital structure. "These funds will be used for new investments and acquisitions," he added.-TradeArabia News Service