Az-Zour North One Power and Water Plant.

KUWAIT: Shamal Az-Zour Al-Oula Power and Water Company KSCP yesterday made its debut on Boursa Kuwait's Premier Market at 9:00am. The company is the first power generation and water desalination company to list on the exchange, and the first Private Public Partnership (PPP) project listed on the exchange.

Chairman of Shamal Az-Zour Al-Oula Power and Water Company, Engineer Husam Abdullah Al-Roumi, said: "We are happy to announce this historic milestone in the Kuwaiti power and water desalination sector and capital markets in the region, as Kuwait's first Public-Private Partnership project and the first power generation and water desalination company listed on Boursa Kuwait's Premiere Market. We would like to extend our sincerest gratitude to those who contributed to our success, for without the efforts of those directly and indirectly involved, this milestone would not be possible."

Prior to the listing, the company's board of directors issued a recommendation during a meeting on August 6, 2020, for a cash dividend payout of 25 fils per share, subject to lenders' approval. This will be the company's first dividend and relates to the retained earnings for the period from 2017 to 2019. The company plans to hold an Annual General Meeting (AGM) of shareholders following the listing. The dividend recommendation, following the lenders' approval, will be on the AGM agenda for shareholders' approval.

The listing follows the successful distribution of 50 percent of the company's shares to Kuwaiti citizens during the last quarter of 2019, which was oversubscribed by 1.27x and attracted close to 127,000 investors. The remaining 50 percent of shares are owned by different public and private entities as follows: 40 percent is owned by a private investor Azour North One Holding Company K.S.C.C., which is owned by a consortium comprising ENGIE, Sumitomo Corporation, A.H. Al Sagar & Brothers; and 10 percent is owned by the Kuwait Investment Authority and the Public Institution for Social Security, each with a 5 percent ownership.

Shamal Az-Zour Al-Oula Power and Water Company KSCP is Kuwait's first company established under the Independent Water and Power Plant ("IWPP") Law. The Company operates the Az-Zour North One Power and Water Plant, which commenced commercial operations in November 2016. The plant supplies about 10 percent of Kuwait's installed power capacity and 20 percent of Kuwait's water desalination capacity. Power and water produced by the company is entirely supplied to the national power and water grid operated by the Kuwait Ministry of Electricity and Water under a 40-year long-term Energy Conversion and Water Purchase Agreement ("ECWPA").