Company Highlights

The Competition Protection Agency (CPA) is currently reviewing two transactions involving four unlisted companies. The first is a letter of intent (LOI) from National Consumer Holding Company to acquire a 50% stake in Al Hadi Holding Company. The second involves a request for economic concentration related to OTC 403 Al-Rashed Group Holdings Company and OTC 221 Kuwait Gypsum Manufacturing and Trading Company.

NCH signs LOI for stake in Al Hadi Holding Company

National Consumer Holding Company (NCHC) announced that it has signed a Letter of Intent (LOI) to acquire a 50% stake in Al-Hadi Holding Company, which owns and operates Hadi Hospital and its subsidiaries. The transaction is valued at approximately KD 60 million and will involve issuing shares of NCHC to the sellers.

NCHC stated that the completion of the deal is contingent upon satisfaction with due diligence reports and obtaining approval from the Competition Protection Agency. Final details of the agreement will be disclosed once all necessary procedures are finalized.

Request for economic concentration

The Competition Protection Agency (CPA) announced that two unlisted companies, OTC 403 Al-Rashed Group Holdings Company, and OTC 221 Kuwait Gypsum Manufacturing and Trading Company, have requested approval to proceed with the economic concentration process for Al-Rashed Holding Company's acquisition of 100% of Kuwait Gypsum Manufacturing and Trading Company's capital.

Additionally, Kuwait Gypsum distributed 5% cash dividends in January 2024 for the 2022 fiscal year.

Trading activity in the shares of both companies has been minimal. Over the past two years, there has been only one transaction involving Kuwait Gypsum shares, which was executed at a price of 40 fils per share in June 2023. Similarly, only one transaction has occurred in the shares of Al-Rashed Group.

Capital increase

Arabi Holding Group Company, a listed company, announced that it is proceeding with plans to increase the capital of its subsidiary, OTC 779 Arabi Enertech. The capital will increase from KD 15,025,000 to KD 20,025,000 through a cash increase of KD 5 million, which will be distributed across 50 million shares, each valued at 100 fils. This increase is allocated to the shareholders registered in the company’s records. After completing the necessary procedures, Arabi Holding Group's ownership stake in Arabi Enertech will increase by 6.72% to 79.80%.

Request for liquidation

The Capital Markets Authority (CMA) has issued Decision No. (119) of 2024, approving the appointment of Ali Muhammad Ismail Kohari as the liquidator for Greenstone Kuwait Investment Consultancy Company. The liquidator may not commence work until receiving approval from the company's general assembly and completing the necessary liquidation procedures.

Additionally, the CMA has decided to remove the company from the register of licensed entities once it meets all required standards and fulfills its legal obligations under Law No. (7) of 2010, which governs the establishment of the Capital Markets Authority and the regulation of securities activities, including all relevant amendments.

AlSour Fuel Marketing Company expands portfolio

Al-Sour Fuel Marketing Company announced that its subsidiary, Advantage Holding Company, has acquired a 30% stake in Partners for Artwork Production, a limited liability company, for a total of KD 300,000.

Results from Previous Assembly Meetings

The extraordinary general assembly of Al Gadaf Real Estate Company approved a continuation plan for the company and a capital reduction from KD 20.2 million to KD 5 million, decreasing the capital by KWD 15.2 million to help eliminate part of the accumulated losses as of December 31, 2023. The assembly also agreed to state that the authorized, issued, and paid-up capital is now set at KD 5 million, divided into 50 million shares, each valued at 100 fils, all paid in cash.

The extraordinary general assembly of Petrolink International Oil Services Company approved an increase in its authorized, issued, and paid-up capital by KD 2 million distributed over 20 million shares, each valued at 100 fils. This capital increase will be paid in cash and allocated to current shareholderg. Additionally, the assembly approved amendments to Article No. 6 of the Articles of Incorporation and Article No. 5 of the Articles of Association, updating the capital structure to reflect the new authorized capital of KD 3 million distributed over 30 million shares, while maintaining the paid-up capital at KD 1 million distributed over 10 million shares, all subject to approval from relevant regulatory authorities.

Kefan Optics Company approved amendments to Article 5 of its Articles of Incorporation and Article 4 of its Articles of Association to update the company's activities.

Upcoming Assembly Meetings

Upcoming assembly meeting will discuss recommendations for cash profit distributions, capital increases as well as decreases:

A.B. Holding Company will hold its ordinary general meeting for the year 2023 to discuss the Board of Directors' recommendation to distribute cash dividends of 5% for the fiscal year ending December 31, 2023 as well as other agenda items. Over the last 2 years, only 3 have been done in the shares of A.B. Holding.

Kuwait Islamic Takaful Insurance Company (OTC 928), which changed its company name from National Takaful, will hold an extraordinary general assembly to discuss a proposal from the Board of Directors to increase the company's authorized and paid-up capital from KD 10 million to KD 15 million, reflecting a 50% increase at a value of 100 fils per share.

Additionally, the company will amend Article 4 of the Articles of Association and Article 5 of the incorporation documents to officially change its activity description to non-life insurance and fund formation. The company will directly conduct these activities both in Kuwait and abroad, either independently or via proxies, and may also invest in or acquire entities engaged in similar operations to further its objectives.

The last deal in the company's shares were done at the end of Jan 2024 at a price of 25.2 fils per share.

OTC 99 Hilal Cement Company which transitioned to the OTC Platform in April 2022 after being a listed company, will conduct an extraordinary general meeting to consider a proposal from its Board of Directors to reduce its issued and fully paid capital from KD 3 million to KD 1.2 million. This 60% reduction amounts to KD 1.8 million and will involve 18 million shares.

As part of this capital reduction, shareholders will receive 60 new shares for every 100 shares they currently own, with any excess funds distributed based on their ownership on the specified due date. The Board of Directors will also be authorized to modify the due schedule of shares and handle any fractional shares resulting from the reduction.

Additionally, the company plans to hold an Ordinary General Assembly to discuss the Board of Directors' recommendation to distribute interim cash dividends to shareholders at a rate of 33% of the nominal value (33 fills per share), totaling KD 990,000. This amount will be calculated after excluding treasury shares and fractional shares from the retained earnings as of July 31, 2024.

Hilal Cement's shares closed this week at 76.5 fils per share.

Trading Update

This week, shares in 40 unlisted companies were traded through 84 transactions. The volume of shares traded fell from 29.7 million last week to 17.8 million this week. In contrast, the trading value increased by 10%, rising from KD 394,800 last week to KD 435,200 this week.

1.84 millions shares were traded through 4 deals in OTC 372 United Oil Projects Company with a closing price of 130 and a volume weighted average price of 132.4 fils per share. At the end of Aug 2024, it was announced that United Oil Projects Company signed an agreement to buy a 49% stake in United Q-Max Drilling Fluids for the value of USD 2 million.

Trading for OTC 232 Albareeq Holding Company closed at 28.8 fils per share this week, marking a substantial increase from last week's closing price of 10.5 fils per share. Year-to-date, a total of 12.38 million shares have been traded across 173 transactions, with a volume-weighted average price of 8.5 fils per share. In July 2024, the company announced a capital increase to KD 45.4 million, and in August, it revealed plans to distribute 4% bonus shares to shareholders.

Almowazi, a source for historical trading data on unlisted, delisted and OTC companies, provides detailed information about deal dates, volume of shares traded, and transaction prices.

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Click here for the updated list of 140 companies being traded as Hybrid deals - companies are sorted by OTC code. The latest joiners have been indicated in green while new hybrid companies since the beginning of the year are indicated in turquoise.

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