Increase will help KIPCO maintain a prudent capital structure: Al-Ayyar

KUWAIT: KIPCO - the Kuwait Projects Company (Holding) - announced that it intends to perform a rights issue, whereby the company's capital will be raised by issuing 452,748,662 underwritten shares with a premium to be determined at a time closer to subscription.

KIPCO's Board of Directors met yesterday and approved the rights issue, subject to completing procedures required by the regulatory authorities. The rights issue will be open to existing shareholders.

Faisal Al-Ayyar, KIPCO's Vice Chairman (Executive), said: "KIPCO has a strong portfolio of growing companies, including our banking, insurance, industrial and education businesses. Just recently, Burgan Bank completed its own rights issue. One of the ways to ensure that we maintain the healthy growth of these companies is for KIPCO to raise its own capital. This increase will ensure that we continue to maintain a prudent capital structure."

The KIPCO Group is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of $33 billion as at 30 September 2018. The Group has significant ownership interests in over 60 companies operating across 24 countries. The group's main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors.