LOC14:15
11:15 GMT
KUWAIT, Dec 13 (KUNA) -- Kuwait Stock Exchange (Boursa Kuwait) announced on Saturday, after having completed all technical and technological requirements in coordination with capital market stakeholders and participants, that the Emerging Companies Market (ECM) will launch and begin accepting listing applications starting Sunday.
In a press release, Boursa Kuwait stated that the establishment of the Emerging Companies Market is the result of collaborative efforts led by the Capital Markets Authority (CMA), which approved the market's regulatory framework and updated listing rules to reinforce corporate commitment to disclosure and governance requirements, thereby enhancing transparency and liquidity.
Boursa Kuwait added that the regulatory framework aims to empower small and medium-sized enterprises (SMEs) by providing them with more flexible financing channels and boosting investor confidence through a balanced regulatory environment aligned with international best practices.
It completed a series of technical upgrades and operational tests, including automated systems and trading platforms, in collaboration with market participants such as brokerage firms and service providers, an integrated approach that ensures the market's readiness from launch and lays the foundation for a fair and transparent trading environment tailored to SMEs.
The ECM is the fruit of institutional coordination between CMA and Boursa Kuwait, reflecting the commitment of the entire capital market ecosystem to providing a safe and efficient listing environment that supports the growth of national companies and offers investors new opportunities within a modern regulatory and operational framework, which enhances the competitiveness of Kuwait's capital market and serves the country's economic development goals.
Noura Al-Abdulkareem, Boursa Kuwait's Head of Markets, stated that the announcement of the operational readiness of the ECM represents a pivotal milestone in Boursa Kuwait's strategy to expand the base of issuers and investors and upgrade the market infrastructure to international standards.
She added that this achievement reflects effective institutional collaboration with CMA providing the necessary regulatory leadership and legislative framework, while Boursa Kuwait ensures technical and operational readiness, this collaboration aims to empower national companies to grow and support the national economy with a strong and sustainable private sector.
Al-Abdulkareem commended the ongoing support from CMA and the efforts of all partners in the market system who contributed to the success of the extensive technical tests, ensuring a transparent and efficient market ready to serve all participants.
Listing on the ECM represents a strategic opportunity for SMEs, granting them access to diverse funding sources at a lower cost compared to traditional financing, thanks to increased transparency, improved governance, and reduced risk.
Listing also enables companies to attain higher valuations due to greater business clarity, stronger corporate governance and improved share tradability within a regulated market that reflects their true value through fair pricing mechanisms, it also enhances a company's credibility and strengthens investor and financial institution confidence, opening the door to new local and international partnerships and investments, while supporting sustainable growth and expansion.
The market features flexible listing requirements tailored to the nature of SMEs, including a minimum fair value of KD 750,000 (approximately USD 2.2 million) determined by a CMA-licensed asset valuer or investment advisor, and a minimum free float of 20% of the company's capital.
The requirements also include a minimum of 20 shareholders, each holding shares worth no less than KD 5,000 (about USD 15,200), and that the company must continue conducting its core business activities as defined in its Articles of Association, with most of its revenue generated from those activities, and submission of audited financial statements for the two full fiscal years preceding the listing application date.
Companies may also list shares of capital increase or shares held by existing shareholders, subject to the approved listing requirements. (end)
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