Unlisted Companies News - Overview & Highlights - 21 to 25 April 2024

After a merger with United Real Estate Company (K.S.C.) which was announced in October 2022, OTC 439 United Towers Holding Company will undergo dissolution and liquidation. The company's extraordinary assembly meeting held at the end of February 2024 has set a 3-month period to complete the process. United Real Estate Company is a listed company on the main market of Boursa Kuwait. No shares have been traded in United Towers Holding since Nov 2022. Read more on our website.

OTC 237 Kout Food Group Company, which manages international brands like Burger King, Taco Bell etc in Kuwait and the Gulf, received approval from the Capital Markets Authority to buy back 10% of its capital in treasury shares. As a result, the company invited shareholders interested in selling their shares to indicate their intention to offer them for sale. The purchase price for any shares offered will be paid in cash, with the specific terms of the sale to be negotiated between the company and the shareholder.

Kout Food started the distribution of 80% cash dividends to shareholders for the 2023 financial year. The company has consistently distributed cash dividends annually since 2015.

This week, OTC 359 Kuwait Credit Information Network (CiNet) revealed its updated corporate identity highlighting its position as a top brand that serves both individual and corporate clients. Kuwait Credit Information Network (CINET) is a closed Kuwaiti shareholding company that focuses on providing services in credit reporting, credit rating, and other related services to the financial, banking, and commercial sectors. Read more about this news on our website.

In the single transaction reported this year, A'ayan, a listed company, sold 5.784 million shares of OTC 359 Kuwait Credit Information Network (CiNet).

Previous Assembly meetings - Feedback and Results

At a recent assembly meeting held to review the results for the financial year ending on December 31, 2023, OTC 367 Wafra International Investment Company reported a 32% increase in its net profit. The net profit for the 2023 financial year totaled KD 7.7 million. Additionally, it was decided at the meeting to distribute cash dividends amounting to KD 3 million, equating to a 20% cash dividend. More details can be found here.

OTC 177 Nafais has approved the distribution of 90% cash dividends to its shareholders. Nafais has a track record of offering substantial cash dividends, having distributed 80% cash dividends in 2023, 50% in 2021, and 70% in 2020.

Since the beginning of the year, 50.5 million shares of Nafais have been exchanged at an average price of 839 fils per share through 4 transactions. In 2023, Nafais ranked among the top 10 unlisted shares in terms of the value traded.

OTC 241 Yiaco Medical which delisted from the main market in Q1 of 2024 and transitioned to trading on the OTC Platform, revealed after its assembly meeting that the company will enhance its authorized and paid-up capital by issuing 1,841,270 shares at a price of 100 fils per share. The company's articles of association have been modified to reflect this change. More details about the results from the assembly meeting here.

Al Muzzaini Exchange Company has approved an increase in the company's authorized and paid-up capital from KD 21 million to KD 21.75 million. Additionally, it has been decided to issue bonus shares at a rate of 3.5%.

Following their recent assembly meetings, the shareholders of the below mentioned unlisted companies have agreed to remove the companies from the commercial register:

• Blue Sky Entertainment Company - as per the news (the company was previously under liquidation)
• Al Adyat International Real Estate Company - refer to more details here.

The shareholders of OTC 771 Global Technologies for Medical Supplies and Services have agreed to the liquidation of the company.

Upcoming Assembly Meetings

OTC 816 AlWaseet Financial Business will be discussing its financial results for the year which ended on 31st of Dec 2023 as well as the recommendation to distribute 5.5% cash dividends. Read more here. In 2022, 11% cash dividends applicable to the 2021 financial year were distributed.

Less than 20,000 shares in AlWaseet have been traded this year so far whereas 265,000 shares were traded in 2023.

OTC 1025 Arabic Digital Holding Company, which started trading as hybrid deal on the OTC Platform in November 2023, is set to review its financial results for the year ending on December 31, 2023. Additionally, a proposal will be put forth to distribute 30 fils per share cash dividends.

More details about the agenda items to be discussed, here on our website.

The upcoming assembly meetings will cover the financial results and a recommendation not to distribute any dividends (all of these companies are trading as hybrid deals).

• OTC 278 AlRai Media Group Company
• OTC 263 Kuwait Pillars for Financial Investment on top of the recommendation not to pay any numeration to the directors of the board.
• OTC 485 Kuwait Catalyst Company

Stay updated with the outcomes of the assembly meetings and any further developments related to the trading, company news and profit distributions by referring to our newsletters and website. Almowazi provides ongoing updates about unlisted, delisted and OTC companies.

Trading Update:

Trading activity on the OTC Platform decreased this week, with a 41% drop in the number of deals compared to the previous week. In total, shares of 37 unlisted companies were traded in 69 deals this week, down from 41 companies and 117 deals last week. Although the volume of shares traded decreased by 38.4% this week to 13.9 million shares, the value of trades increased from KD 314,700 to KD 442,600.

On the OTC Platform this week, OTC 480 CreditOne Kuwait Holding Company . emerged as the stock with the highest value traded. This week 500,000 shares were traded in a single transaction at a price of 400 fils per share. CreditOne started trading as hybrid deals in Q1 of 2024.

This week, OTC 84 Refrigeration Industries And Storage Company saw 100,000 shares exchanged in 4 deals, with trading concluding at 820 fils per share. An ordinary assembly meeting is planned for early May to review the company's financial results for the 2023 fiscal year. It is worth noting that cash dividends of 35% were distributed last year.

Active trading was also done in OTC 106 Kuwait Commercial Markets Company has conducted 8 deals on the platform this week. The closing price of OTC 106's shares for the week was 26 fils per share. The volume-weighted average price for all trading involving this company's shares on the OTC Platform this year so far stands at 26.5 fils per share and involves slightly more than 1 million shares through 33 deals.

An upcoming meeting of shareholders will discuss the recommendation not to distribute any dividends or to pay any renumeration to the Board of Directors. More about the details to be discussed at the upcoming assembly meeting here.

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.

Click here for the updated list of 136 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.

For a detailed analysis and to dive deeper into these trading highlights, please visit our website, where you can access real-time trading data as well as historical trading data for the market as well as by company.

Real time information about other Private deals (Negdeals) conducted through Kuwait Clearing Company (KCC) is only available on www.almowazi.com as part of the Live Market Watch subscription. Summary information is available on the home page under the tab "Off market Neg deals".

Prices as noted in this update refer to Real time information transmitted by Boursa Kuwait in accordance with the terms and conditions of Almowazi's License Agreement.

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