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Kuwait’s CMA to Start Stake Sale of Bourse to Local Investors

Filipe Pacheco and Fiona MacDonald

(Bloomberg) -- The Kuwait Capital Market Authority will start next month a public offering of its 50% stake in the local stock exchange.

Only Kuwaiti citizens will be eligible to buy the shares, according to a press release on Sunday. The subscription period will run from Oct. 1 to Dec. 1, with the offering price set at 100 fils per share, or one-tenth of a dinar.

The offering is the second and final stage of a privatization process that started in February, when the markets regulator sold 44% of the company to a consortium of domestic and international investors.

Boursa Kuwait will be the second in the Gulf to be publicly traded after Dubai’s.The consortium that bought the stake earlier this year comprised the Athens Stock Exchange, National Investments Company, First Investment Company and Arzan Financial Group.After the offering is completed, Kuwait’s Public Institution for Social Security will retain the remaining 6% in the company.Kuwait’s main equity index is up about 24% this year, the most within major peers in the region, amid bets of an upgrade from frontier to major emerging-markets gauges.

To contact the reporters on this story: Filipe Pacheco in Dubai at fpacheco4@bloomberg.net;Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Srinivasan Sivabalan

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