The Chief Executive Officer of Boursa Kuwait said that the stock exchange’s initial public offering (IPO) is progressing well and will close next month oversubscribed, reported Bloomberg.
Mohammad Al Osaimi, the CEO of Boursa Kuwait, said, “I’m 100 per cent sure it will be covered many times.”
The sale of half the exchange to local citizens began in October and will end on 1 December 2019, with the offering set at 100 fils per share. The IPO follows a 44 per cent sale earlier this year to a consortium of domestic and international investors.
Late in October, Kuwait’s highest religious authority said that the offering breached Islamic law’s prohibition on interest and branded it ‘Haram’. According to the authority, Boursa Kuwait facilitates trades in some companies that do not comply with Islamic principles.
Al Osaimi said that local legislation does not state the bourse must be Shari'ah-compliant and that the exchange operates with normal practises seen in other markets. The CEO expects the stock to start trading around June 2020.
The exchange has made all the changes necessary for index compiler MSCI to upgrade it to emerging-market status in June, as required by the New York-based company earlier this year, said Al Osaimi.