Third mobile company in Kuwait to have IPO. (Kuwait)According to the officials, For the emirate’s third mobile phone company which is expected to start operating later this year, Kuwait has launched an initial public offering (IPO). Initial Public Offering (IPO) is referred to simply as a “public offering”, is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.
IPO, open until September 18, half of Kuwait Telecom Company’s capital of 500 million shares will be available to Kuwaiti citizens only for a nominal price of 100 fils (37 cents) plus a five fils premium per share.
Salman al-Badran, head of the new mobile phone project, said that the IPO will raise $98.3 million.
Last Year, Saudi Telecom (largest Arab telecommunications firm) was in a move to become the main operator, won a 26% stake in Kuwait Telecom Company after bidding $931.4 million. Presently, STC is serving 20 million mobile subscribers of the ninth richest country in the world per capita, Landlines has even cross the mark of five million.
