The Egyptian Exchange (EGX) agreed to extend the listing and offering period for the Kuwaiti Al Salam Group until May, Mohamed Maher, CEO of Prime Investment Bank said.
Prime Investment has been tasked with completing the procedures for the dual listing of the Kuwaiti Al Salam Group in the stock exchange. This comes following the completion of the six-month grace period during which the company was to offer stocks after its listing last July.
The reason behind the delay, according to Maher, is that the Kuwaiti Capital Market Authority (CMA) requested more requirements from the company in order to enable it to offer 30% of its shares in the form of Egyptian deposit certificates.
Maher said the offering is expected to be finalised by July, adding that the company awaits the approval from the Kuwaiti CMA to convert 13% of its shares into deposit certificates, in addition to the 17% previously approved by the CMA.
Al Salam Group was established in 1997 as a Kuwaiti shareholding company, and was registered on the Kuwaiti stock exchange in 2005. This was soon followed by registering its shares in the Dubai stock exchange (Nasdaq).
Al Salam Holding Group’s capital is estimated at KWD 25.68m, distributed over 256.8m shares, with a nominal value of 100 Kuwaiti fils per share.
When the listing committee in the EGX approved listing the Egyptian deposit certificates of Al Salam Holding Group’s shares in 2015, with a maximum of 77m shares in the company, terms of trade were approved as one share per Egyptian deposit certificate, according to the share’s or the certificate’s nominal value that is equivalent to 100 Kuwaiti fils.
Maher highlighted that Al Salam will register its shares at a value of EGP 2.5 per certificate.