Following approval from the Capital Markets Authority to list on the Bahrain Bourse and receipt of the total acceptance rate of the offer document from Kuwait Clearing House, the chairman of the board of directors of “Kuwait Finance House” (KFH), Hamad Al-Marzouq, rang the bell to list and begin trading KFH shares on the Bahrain Bourse.
In the event that the agreement to buy all of the outstanding shares of Ahli United Bank of Bahrain is successfully completed, Bahrain and the receiving agents will also be parties.
Bahrain’s Minister of Finance and National Economy Sheikh Salman bin Khalifa Al Khalifa, Minister of Industry and Commerce and CEO of the Bahrain Stock Exchange Sheikh Zayed bin Rashid Al Zayani, and Governor of the Central Bank of Bahrain Rashid Al Maraj, among many other officials, businesspeople, and investors, attended the ceremony to ring the bell for the listing and launch of trading in KFH shares.
Al-Marzouq expressed his joy over the successful listing of KFH shares on the Bahrain Bourse and emphasised that the cross-listing of KFH shares on the Bahrain and Kuwait bourses has several advantages for the shareholders and the institution because it increases market liquidity.
Given that the stock is traded on multiple financial markets, it helps to increase the positive activity of the two stock exchanges and gives access to more potential investors, strengthening the institution’s capital opportunities.
Due to the bank’s increased weight in the MSCI index, which indicates that overseas investors will adjust their portfolios based on the new ratio, he anticipated strong liquidity for KFH’s share after trading the newly issued shares.
The multiple listing of KFH shares, he continued, also aids in strengthening the governance framework that directs the institution’s directions and goals and increases prospects for recruiting the best individuals to fill positions in the stock market and customer support.
Al-Marzouq continued by stating that one benefit of cross-listing is to improve the institution’s standing and reach, suggesting that this can be leveraged in the marketing plan of multi-listed firms to draw in overseas investors.
Al-Marzouq appreciated the support of investors and the business community, and thanked the Kuwait and Bahrain Stock Exchanges, Kuwait and Bahrain Clearinghouses, the Capital Markets Authority, and all the other regulatory bodies in Kuwait and Bahrain that gave their blessing to the transaction.
He thanked everyone who worked on the cross-border acquisition, including the Securities and Investment Company (SICO), and expressed his appreciation for their efforts. This cross-border acquisition raised the bank’s capital base to more than $10 billion dollars and strengthened Kuwait and Bahrain’s reputation as prestigious financial centres in the Gulf.
The Bahrain Bourse’s shares of “KFH” begin trading when Hamad Al-Marzouq rings the bell.
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