KIPCO Raises Over $312 Million From Rights Issue

Kuwait Projects Company (KIPCO) has revealed that it has raised $312.3 million in equity from its latest rights issue.

The board of directors approved the capital increase in January, with the aim of growing KIPCO’s businesses through continuing to invest in its core portfolio companies, which include Qurain Petrochemical Industries Company, Kamco, Kuwait Hotels Company, OSN, United Networks and American University of Kuwait.

The rights issue saw a 17 percent oversubscription in the 452,748,662 new ordinary shares that were on offer, with the amount raised representing an approximate 29.3 percent rise on KIPCO’s former issued share capital. KIPCO’s issued share capital now stands at $657m (KD200m).

The offer price was set at 210 fils per issue share.

KIPCO’s last capital increase was in 1996. KAMCO Investment Company acted as the issuance advisor and subscription agent.

In November KIPCO hired bankers to sell its 60.50 percent stake in OSN.