KSE
Committee decision no. (1) for the year 2007 concerning
the rules and conditions for listing shareholding companies
in the Official Market
After the perusal of the Amiri Decree issued on 14/08/1983
organizing the Kuwait Stock Exchange.
And the Decision of the Minister of Commerce and Industry
no. 35 for the year 1983 issuing the bylaws of KSE.
And the KSE Committee Decision no. (3) for the year 2004
concerning the rules of listing companies in the Official
Market and the Parallel Market.
And the KSE Committee Decision no. (7) for the year 2005
to add two conditions to the listing conditions.
And after the approval of the Market Committee in its meeting
no. (4) dated 15/11/2006.
The following has been decided:
Article
(1)
The
shareholding companies requesting listing of their shares
in the Official Market shall satisfy the following conditions.
Article
(2)
The
company’s paid-up capital shall not be less than (10) million
Kuwaiti Dinars or any equivalent amount in foreign currency,
and the shareholders’ equity shall not be less than 115%
of the paid-up capital in each of the last three years,
according to the audited financial reports prior to the
listing request.
Article
(3)
The
company’s shares shall be tradable according to the law
under which they were established taking into account that
the period required to trade shareholders’ or owners’ shares
is not less than that required in the Kuwaiti commercial
companies law for trading the shares of shareholders and
owners in Kuwaiti shareholding companies.
Article
(4)
The
company shall have achieved net profit in the last two years,
and the yearly net profit shall not be less than 7.5% of
the paid-up capital.
Article
(5)
If
the listing request is from a closed company which had increased
its capital more than 50%, a period of one year should have
passed from the date of notice in the commercial registry.
Article
(6)
If
the listing request is from a closed company which had changed
its legal structure from a limited liability company to
a closed shareholding company, a period of three years should
have passed from the date of notice in the commercial registry.
Article
(7)
Not
less than 30% of the company’s capital shall be offered
for private placement by a specialized company independent
from the company that requested listing according to the
procedures set by the Market management in this regard.
Article
(8)
The
company should attain the approval of its general assembly
to list its shares in Kuwait Stock Exchange.
Article
(9)
The
company’s board members shall pledge to adhere with all
the rules and regulations set by Kuwait Stock Exchange,
and to provide KSE management with all the required data
and information provided that this information is correct
and reliable.
Article
(10)
The
company shall provide its shareholders’ registry to the
clearing company and adhere with all the instructions issued
by KSE in this regard.
Article (11)
A
non-Kuwaiti company should be listed in its country of origin
stock market.
Article
(12)
Strategic
partners in closed companies requesting listing in KSE shall
keep not less than 25% of the company’s capital. Strategic
partners are all shareholders owning 5% or more of the company’s
capital. In case the total strategic shareholders’ ownership
is less than 25% of the company’s capital, the company shall
have the right to complete the difference from other shareholders
who own less than 5% of the company’s capital. Each strategic
shareholder shall abide with the following:
a) Not to act with 50% of the total strategic shares before
the end of one year from the listing date.
b) Not to act with 50% of the total remaining strategic
shares before the end of two years from the listing date.
Exception to the above is when one of the strategic shareholders
sells his entire share to another shareholder. This new
shareholder shall abide with the time condition stated above
which commences from the company’s listing date.
Article
(13)
The
company shall pay a registration fee of 10,000 Kuwaiti Dinars
and an annual subscription fee of (0.05%) of the company’s
paid-up capital but not exceeding 50,000 Kuwaiti Dinars.
Article
(14)
The
company shall fulfill KSE listing procedures during three
months from the date of notification of Market approval
which shall be considered void in case of incompliance with
this period.
Article
(15)
The
market committee has the right to reject listing of any
company without stating the reasons.
Article
(16)
This
resolution shall come into force as of its date of issue,
and all that contravenes the provisions contained herein
shall be repealed.