One of Kuwait’s largest privately-owned companies, Alghanim Industries Ltd., is looking to raise nearly $1 billion through a prospective IPO, according to sources with knowledge of the situation.
According to sources, the family-run company, which has a history dating back more than 100 years, is collaborating with banks on the potential listing, including Credit Suisse Group AG. According to the persons, who asked to remain anonymous since the conversation is private, Alghanim is in discussions with other regional and international banks about potential roles in any IPO.
According to the persons, discussions about a potential listing are still in their early stages and no decisions have been carved in stone. The company’s chairman, Kutayba Alghanim, revealed in a letter to his colleagues in August that he was investigating the probability of listing a minority in Kuwait’s main market.
According to its website, Alghanim traces its origin back to about 100 years, and now has more than 14,000 employees and is active in more than 30 industries, including automotive, retail, building materials, and financial services. In addition to operating the Costa Coffee franchise in Kuwait and the Wendy’s Co. franchise throughout the Middle East, it controls the dealership rights to automobile brands like Cadillac, Honda, and Lincoln.
This year, the Middle East has been a standout destination for IPOs, thanks to the region’s booming equity markets and rising oil prices. Saudi Arabia and the United Arab Emirates, two GCC neighbours of Kuwait, have witnessed a flurry of initial public offerings (IPOs) in recent months from family-owned businesses and government-affiliated organisations eager to capitalise on the oil windfall gains brought on by the Russia-Ukraine conflict, which left the region’s investors flush with funds.
The third listing in the emirate this year, Dubai hopes to raise $817 million through the initial public offering of its road toll collection system.
