Bloomberg/Mohammed Al-Nemer
Kuwait’s government will invest as much as $1 billion in the initial public offering (IPO) of Saudi Aramco as the Kingdom asks regional allies to bolster the record share sale, reported Bloomberg.
The Kuwait Investment Authority (KIA) had been reluctant to commit significant funds to the IPO but was told by the government that a stake was in the country’s strategic interest.
Kuwait’s move follows Abu Dhabi, the oil-rich member of the UAE, which has decided to invest $1.5 billion in Saudi Aramco.
Bringing in another major investor from the Gulf region will be a relief for Saudi Arabia after plans to market the IPO globally were abandoned. Saudi Aramco had high hopes of drawing in sovereign investors, including a big purchase from China, but has yet to announce any firm commitments.
The institutional part of the book now has bids totalling SAR 144 billion ($38 billion), covering that part of the proposed sale 2.3 times.
While it has holdings in Kuwait, the KIA is not known to invest in the region. The fund has interests in ports, airports and power distribution globally.
MOST READ
BUSINESS
Fed rate cuts add pressure on Saudi banksBUSINESS
ING Groep plans to sell its Turkish unitBUSINESS
Bahrain considers stake sell in oil assetsBUSINESS
SABB seeks to boost corporate lendingBUSINESS
Dubai’s W Motors seeks funds to go electricBUSINESS
HSBC considering exiting from TurkeyBUSINESS
Zimbabwe turns to UAE to sell a stake in...BUSINESS
ADIA plans to sell a $2 billion stake in...BUSINESS
Amanat considers stake in VPS HealthcareBUSINESS
ECI, HSBC partner to support UAE businessesBUSINESS
National Bank of Oman to exit from EgyptBUSINESS
Salt Bae backers seek a partner and a $1...BUSINESS
Oman plans to launch new regional airlineBUSINESS
Central Bank of Kuwait approves KFH-AUB merger
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
