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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.
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