Kuwait – Boursa Kuwait saw the IPO of Alghanim & Sons Automotive Company on June 7, marking a milestone as the first family-owned automotive company to list on the Gulf markets.
The company said the public offering, which took place a few days earlier, was oversubscribed about 11 times, reflecting investor confidence, reflecting strong demand during the subscription process for 45% of the company’s shares.
The company also said that the official listing on the Kuwait Stock Exchange stems from its sense of responsibility as a leading company in the region in general, and in Kuwait in particular, which aims to adopt the principles of transparency and governance. It is also looking to broaden its reach, which will help create unique employment opportunities for young people, while deploying the company’s considerable capabilities and exceptional executives who represent an additional driving force enabling it to achieve its stated goals.
Deeply Rooted Trust
Eng Fahad Ali Al Ghanim, Chairman of Ali Alghanim Sons Automotive Company, said, “The exceptional demand from local and foreign investors witnessed during the underwriting process clearly demonstrates their deep-rooted confidence in the company. This, in turn, gives Ali Alghanim an important responsibility to ensure that the needs of stakeholders are met diligently.
“We are proud to be the first family-owned automotive company in the Gulf to be listed on one of the region’s major stock exchanges and we hope to see other family-owned companies follow suit, as we strongly believe in adding value and real benefits it brings to national economies,” added Alghanim.
Alghanim spoke about the challenges faced by family businesses around the world, stating that key indicators show that around 70% to 80% of family businesses internationally collapse and falter when they reach the third generation, while by being subject to several challenges due to the succession of generations and the diversity of points of view.
“As a result, we considered it prudent to take advantage of these experiences and introduce the company on Boursa Kuwait, taking into account that listed companies benefit from a high level of transparency and governance. This supports the company’s plans to expand inside and outside of Kuwait, and eventually increase revenue and profits. »
Alghanim Sons Automotive is the official agent for BMW, Land Rover, Rolls-Royce, McLaren, Geely and Great Wall Motors in Kuwait, in addition to owning renowned international oil, battery and tire agencies. He is also a key shareholder of BMW and Mini in Iraq and Egypt.
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