Kuwait Energy plans initial share sale in nine months

Kuwait Energy plans initial share sale in nine months

Co may seek listing in London and Kuwait bourse.

October 11, 2010 8:35 by Reuters

Kuwait Energy Co, which operates in Middle East, Russia and Pakistan, plans to launch an initial public offering (IPO) within the next nine months, the company said in a statement on Sunday.

Kuwait Energy said its shares may be listed on the London and Kuwait stock exchanges, subject to market conditions.

The company had originally planned an IPO for the end of 2010 but delayed those plans given weak global market conditions.

The privately held company’s shareholders also approved a plan to increase its authorised share capital through a rights offering, the company said.

Kuwait Energy’s its capital will rise to 127 million dinars from 103.6 million dinars currently after the rights issue of 198.3 million shares at 155 fils per share, it said.

“The rights issue will enable Kuwait Energy to pursue organic growth in our expansion plans, to develop recent discoveries and explore additional wells in our assets in the region, especially in Egypt,” said chairman and managing director Manssour Aboukhamseen.

In May, Kuwait Energy said it struck oil in a field in Egypt’s Western Desert, its seventh find in Egypt.

Kuwait Energy has projects in Oman, Yemen, Egypt, Russia, Ukraine, Latvia, Pakistan and Cambodia.

(Reporting by Shaheen Pasha; Editing by Dinesh Nair)