Oversubscription exceeds 230%, number of investors soar past 1,000: Watani Investment Co
KUWAIT CITY, June 11: Watani Investment Company (NBK Capital) and Integrated Holding Company (IHC), the largest crane operator in the Middle East focused on the oil, gas and energy sectors, announced the successful closing of the private placement of 35% of the company’s capital, with over-subscription exceeding 230%.
Led by Watani Investment Company (NBK Capital) as the Lead Manager, the private placement of around 76 million shares of Integrated Holding Company was undertaken at a price of 730 fils per share and raised more than KD 130 million. The number of investors in the private placement exceeded 1,000, making the company eligible to list on Boursa Kuwait’s premier market. The listing of the company will provide an opportunity for investors to participate in one of the most promising sectors locally and globally.
This was announced during a press conference jointly organized by NBK Capital and Integrated Holding Company to announce the successful closing of the private placement of secondary shares of Integrated Holding Company in preparation for listing on Boursa Kuwait’s premier market.
Commenting on the Private Placement, NBK Capital’s CEO, Faisal Al-Hamad said: “The offering attracted strong interest from retail and institutional investors, corporates, local and regional investment companies and funds, family offices and government investment arms. The success of the offering reflects the growing interest in investing in strong operating companies in Kuwait.”
“NBK Capital is proud to have offered its investment banking advisory services to Integrated Holding Company to execute this offering, which represents a landmark transaction that will pave the way for upcoming issuances by Kuwaiti family businesses.”
Faisal Al-Hamad added: “The success of this transaction was achieved through the continuous support provided by the Capital Markets Authority and Boursa Kuwait. I would also like to thank Integrated Holding Company for entrusting us with this opportunity and we look forward to executing many more of these successful transactions in the future.”
Jassim Mustafa Boodai, Chairman and CEO of Integrated Holding Company, said: “We are very pleased to announce that the offering has closed with record figures. We look forward to listing the company on the premier market after Eid Al Fitr.”
“Since the company was founded more than a decade ago, Integrated Holding Company has rapidly strengthened its position in the market to play a key role in supporting the oil, gas and energy sectors and has achieved steady growth to become the largest crane operator in the Middle East. As a key partner for many of the most dynamic and complex projects in the industry, Integrated Holding Company continues to deliver operational solutions tailored to the specific needs of the industry.”
“The Company achieved a net profit of KD 13.3 million in 2017 ie 60.5 fils per share, achieving a growth rate of 36%,” said Boodai. “We expect the company to achieve a net profit of at least 15.8 million dinars for the year 2018 with an annual growth of 19%, equivalent to 72 fils per share. The company achieved a net profit of KD 5 million during the first quarter of 2018, compared to KD 3.3 million for the same period last year, achieving a growth of 50%. The revenues for the first quarter of 2018 showed an increase of 27.6%. The company’s earnings per share rose to 22.6 fils in the first quarter of 2018 compared to 15.1 fils for the same period last year, an increase of 50%.”
“The company has consistently paid dividends either in the form of cash dividends or bonus shares since its first year of operations in 2007. The company distributed a record cash dividend of 30% in 2017. In the future, the company aims to distribute around 50% of its profits in the form of cash dividends.”
The company is ranked third in the world and the first in the Middle East in the operation of mobile cranes. Since inception, the company has focused on servicing the requirements of the oil, gas and energy sectors.
Established in 2005, the company has a paid up capital of KD 22 million and is a Shariah Compliant Company engaged in the operational equipment rental of cranes and heavy equipment for the oil, gas, power and infrastructure sectors. It operates primarily through its subsidiaries in Kuwait and Qatar and is currently expanding into Oman.