Trading in shares of Kuwait Finance House (KFH), with a market capitalisation of $38 billion, began at the Bahrain Bourse (BHB) yesterday.
This follows the acquisition of Bahrain’s largest lender Ahli United Bank (AUB) by Kuwait Finance House (KFH) for approximately $11.6bn.
The deal is the first ever cross-border public takeover involving a share issuance and amounts to one of the largest takeovers in the GCC.
To mark the cross-listing of KFH shares, a bell ringing ceremony was held in the presence of Industry and Commerce Minister and Minister in Charge of Bahrain Bourse Zayed Alzayani, KFH chairman Hamad Al Marzouq and executive management of the Kuwaiti bank.
Also present were BHB chief executive Shaikh Khalifa bin Ebrahim Al Khalifa, CEOs of listed companies, representatives from the CBB, board members and senior officials of the self-regulated multi-asset marketplace.
“We are pleased to onboard the cross-listing of Kuwait Finance House. The listing is a significant step towards achieving our strategic goals of attracting new companies from leading financial institutions, and is set to further expand Bahrain Bourse’s investor base and enhance liquidity in the market,” said Shaikh Khalifa.
“Bahrain Bourse plays an important and crucial role in the kingdom’s economic diversification initiatives, as we look forward to attract additional leading companies, and enhance the capital market ecosystem.”
On his part, Mr Al Marzouq commented: “I am pleased with the successful cross-listing of KFH shares on Bahrain Bourse. The cross-listing will enhance liquidity in the market, and contribute to the positive activity of both markets, allowing access to more potential investors and more capital raising opportunities given that KFH shares are being traded in more than one market worldwide.”
Expertise
He also praised the efforts of local and international consultants and SICO, in addition to the acquisition team in completing the “major cross-border merger which increases the capital base of KFH to more than $10bn and strengthens the standing of Kuwait and Bahrain as prestigious financial hubs in the GCC region”.
Najla Al Shirawi, chief executive of SICO, said: “SICO is proud to have been chosen by KFH as the Bahrain receiving agent, Bahrain execution adviser, and cross-listing adviser on this landmark deal. Our investment banking team used their regional know-how and expertise in executing M&A deals to seamlessly carry out this transaction. The cross-listing of KFH on Bahrain Bourse allows investors who previously owned AUB shares in Bahrain to trade their newly swapped KFH shares on the Bahrain Bourse through a local broker. And with access to both markets, investors will benefit from a more liquid trading environment.”
KFH shares will be traded in the regular market under the trading symbol (KFH) in USD in accordance with market procedures, and will be classified under the non-Bahraini companies sector.
Following this announcement, the total number of listed companies at Bahrain Bourse now stands at 43.
Licensed by the Central Bank of Kuwait as a locally incorporated Islamic bank, KFH provides a wide range of Shari’a compliant banking products and services.
KFH was established in 1977, and was listed on Boursa Kuwait in 1984. Its authorised share capital is 1.35bn Kuwaiti dinars divided amongst 13,309,448,363 shares with a nominal par value of 0.100 Kuwaiti dinar per share.
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