KIPCO
 | |
| Company type | Public |
|---|---|
| Industry | Holding company |
| Founded | 2 August 1975 as Kuwait Investment Projects Company |
| Headquarters | KIPCO Tower, Khalid Bin Al Waleed Street, Sharq, Kuwait City |
Area served | GCC & MENA Region |
Key people | Sheikh Hamad Sabah Al Ahmad Al Sabah (Chairman) Sheikh Abdullah Naser Sabah Al Ahmad Al Saba (Vice Chairman) |
| Products | Commercial banking, petrochemical & oil services, foodstuff, asset management & investment banking, media, real estate, healthcare, logistics and education |
| Revenue |  US$ 4.2 billion (2023)[1] |
| US$ 98 million (2023)[1] | |
| Total assets | US$ 40.1 billion (2023)[1] |
| Total equity | US$ 2 billion (2023)[1] |
Number of employees | 16000[2] |
| Website | www.kipco.com 29°22′33″N 47°59′11″E / 29.37583°N 47.98639°E |
Kuwait Projects Company (Holding), known as KIPCO, is an investment holding company in the Middle East and North Africa (MENA) region, with consolidated assets of US$ 40.1 billion as of 31 December 2023 and presence in 20+ countries across multiple industries. KIPCO is a multi-sector operator with portfolio companies in commercial banking, petrochemical & oil services, foodstuff, asset management & investment banking, media, real estate, healthcare, logistics and education. [3]
History
[edit]KIPCO was incorporated on 2 August 1975 under Article 94 of the Kuwaiti Commercial Companies Code, Law No. 15 1960.[4] Since incorporation, the company has grown substantially and made significant investments in a diversified portfolio of companies operating throughout the GCC and the wider MENA region.
Milestones
[edit]| 1988 | Acquisition of United Gulf Bank (UGB)[5] |
| 1995 | Acquisition of stake in United Real Estate Company (URC)[6] |
| 1995 | Acquisition of stake in Burgan Bank |
| 1995 | Formation of Gulf DTH (Showtime) |
| 1996 | Acquisition of stake in Gulf Insurance Company (GIC) – now Gulf Insurance Group[7] |
| 1996 | Acquisition of United Industries Company (UIC) |
| 1996 | Acquisition of SADAFCO - Saudia Dairy and Foodstuff Company - by UIC |
| 1998 | Formation of KAMCI – KIPCO Asset Management Company[8] |
| 1999 | Acquisition of stake in Wataniya Telecom[9] |
| 2006 | Establishment of US$2 billion EMTN programme[10] |
| 2007 | Sale of Wataniya Telecom |
| 2009 | Merger of Showtime and Orbit to create OSN[11] |
| 2009 | Completion of a 7-year US$500 million bond issue under EMTN programme[12] |
| 2010 | Completion of a 7-year US$500 million bond issue under EMTN programme[13] |
| 2010 | Sale of 39.2% stake in GIC to Fairfax[14] |
| 2010 | KIPCO acquires 34% direct stake in URC by subscribing to rights issue in Dec’10[15] |
| 2010 | Acquisition of 40.3% stake in UIC, 28.4% during rights issue and 11.9% from KAMCO in Sep’10[16] |
| 2012 | Burgan bank acquires 99.3% in Eurobank Tekfen (rebranded as Burgan Bank – Turkey)[17] |
| 2013 | OSN acquires 100% stake in Pehla (region's largest provider of South Asian pay TV content)[18] |
| 2013 | Burgan Bank & UGB jointly acquired ~49% stake in Fimbank, Malta[19] |
| 2013 | UIC purchases additional 10.8% stake in Qurain Petrochemical Industries Company(QPIC)[20] |
| 2013 | UIC divests 29% stake in SADAFCO for KD66 mn[21] |
| 2014 | Completion of a 5-year US$500 million bond issue under EMTN programme[22] |
| 2014 | UIC divests remaining 11% stake in SADAFCO for KD25mn |
| 2014 | Burgan Bank completed the issuance of US$500mn perpetual bond[23] |
| 2014 | Burgan Bank successfully raised capital worth KD102.6 million through a rights issue[24] |
| 2015 | OSN secures second Syndicated Financing Facility for US$400 million[25] |
| 2015 | KIPCO through its subsidiary acquired 51.2% stake in Jordan Kuwait Bank from Burgan Bank[26] |
| 2016 | KIPCO repays KD 80 million bond[27] |
| 2016 | Completion of a 7-year US$500 million bond issue under EMTN programme[28] |
| 2016 | Burgan Bank completed the issuance of a KWD 100 million Tier 2 Capital issuance[29] |
| 2016 | GIG acquires 90% stake in Turkish non-life insurer[30] |
| 2016 | Burgan Bank successfully completed issuance of 5 year, US$500mn bond under its Medium term notes programme[31] |
| 2016 | KIPCO repaid US$500mn bond issued under the EMTN programme in October 2016 |
| 2017 | Successfully completed issuance of 10 year US$500mn bond under its EMTN programme with simultaneous tender of ~53% of its EMTN 2019[32] |
| 2017 | URC announces 40% acquisition in Insha'a Holding.[33] |
| 2017 | United Gulf Bank (UGB) has undergone corporate reorganization (in September 2017) and has split its operations across a holding company - United Gulf Holding Company B.S.C. (UGHC) and the regulated banking entity- UGB.[34] |
| 2017 | Completed first ever seven-year corporate dinar bond issue of KD 100 million maturing in December 2024[35] |
| 2018 | Completed a five-year KD 100 million corporate dinar bond issue maturing in November 2023[36] |
| 2019 | Announced a rights issue of 453 million fully underwritten shares[37] |
| 2019 | Repaid US$ 500 million bond issued under EMTN program matured in February 2019[38] |
| 2019 | KIPCO Completed its rights issue & raised KD 95.08 million in equity[39] |
| 2021 | KIPCO Completed its rights issue of 640 million shares (offer was oversubscribed), and KIPCO raised KD 80 million in equity[40] |
| 2022 | In Nov 2022, successfully merged Qurain Petrochemical Industries Company K.S.C.P. (QPIC) into KIPCO Largest KD-denominated bond issuance of KD165mn ($538mn); bought back US$343mn of existing bonds due in 2023 & 2024[41] |
| 2023 | Completed the sale of its stake in GIG to Fairfax for US$860 million in December 2023. The KIPCO Group realized a profit of ~KD73 million on the sale[42] |
| 2024 | In April 2024, announced the completion of OSN+ and Anghami (NASDAQ: ANGH) transaction[43] |
Corporate governance
[edit]KIPCO is a strong supporter of promoting transparency of operations, thereby launching its annual Shafafiyah (transparency) investors’ forum in 2004.[44] In this forum, KIPCO and its Group companies shed light on ethical and responsible decision making methods, while safeguarding the integrity of financial reporting. KIPCO has made timely and balanced disclosures, while efficiently recognising and managing risk.
Board of Directors
[edit]| Name | Position |
|---|---|
| Sheikh Hamad Sabah Al Ahmad Al Sabah | Chairman |
| Sheikh Abdullah Naser Sabah Al Ahmad Al Saba | Vice Chairman |
| Sheikha Dana Naser Sabah Al Ahmad Al Sabah | Executive Board Member |
| Abdullah Yacoub Bishara | Independent Board Member |
| Faisal Hamad Al Ayyar | Non-Executive Board Member |
Executive management
[edit]| Name | Position |
|---|---|
| Sheikha Dana Naser Sabah Al Ahmad Al Sabah | Group Chief Executive Officer |
| Samer Khanachet | Deputy Group Chief Executive Officer |
| Sunny Bhatia | Group Chief Financial Officer |
| Sheikh Sabah Mohammad Abdulaziz Al Sabah | Group Chief Strategic Projects Officer |
| Khaled Abdul Jabbar Al Sharrad | Group Chief HR & Admin Officer, Board Secretary |
| Moustapha Samir Chami | Deputy Group Chief Financial Officer |
| Mohammad Abdullah Al Hubail | Deputy Group Chief of HR & Admin Officer |
| Ghada Khalaf | Group Senior Vice President – Investments |
| Samer Abbouchi | Group Senior Vice President – Investments |
| Adel Jassem Al Waqayan | Group Treasurer |
| Eman Mohammad Al Awadhi | Group Senior Vice President – Corporate Communications & Investor Relations |
| Riyad Mohammed Hanbali | Group Vice President – Internal Audit |
Shareholding structure
[edit]KIPCO's principal shareholder is Al Futtooh Holding Company (AFH), a Kuwaiti holding company owned by members of the Kuwaiti ruling family. Post merger, AFH continues to be the largest shareholder with 31.91% ownership.
The following table sets out the percentage holdings of the company's major shareholders as at 31 March 2024:[47]
| Percentage holding | |
|---|---|
| Al Futtooh Holding Company K.S.C. (Closed) | 31.91
|
| United American Holding Co.& Group (Al Janah Holding Co.) | 21.32
|
| United Industries Co. & Group (Kuwait National Industrial Projects Co.) | 6.25
|
Group structure
[edit]The principal subsidiaries and associates of KIPCO are in commercial banking, petrochemical & oil services, foodstuff, asset management & investment banking, media, real estate, healthcare, logistics and education sector.
The table below sets out the KIPCO's controlling or significant stakes in key portfolio companies*:[48]
| Commercial Banking | Petrochemical | Foodstuff | AMIB | Media | Real Estate | Oil Services/ Logistics | |||
|---|---|---|---|---|---|---|---|---|---|
| Burgan Bank | Equate | SADAFCO | UGH | KAMCO Invest | OSN | United Real Estate Company | NAPESCO | JTC | |
| KIPCO Group effective stake | 62%
|
6%
|
41%
|
91%
|
56%
|
70%
|
63%
|
60%
|
47%
|
∗ Effective stakes as of 31 March 2024
Principal companies/ key subs and associates
[edit]- Burgan Bank: Burgan Bank is a public shareholding company incorporated in Kuwait by Amiri Decree dated 27 December 1975 and its shares are listed on Boursa Kuwait Premier Market. Burgan Bank is regulated by the Central Bank of Kuwait. It is the second largest conventional commercial bank by assets US$ 24.9bn as at 30 June 2024 and is one of the most diverse banking groups in Kuwait.
- Equate: Equate is a Kuwait based petrochemical company with operational presence in 11 countries through its subsidiaries. Product portfolio of Equate includes Ethylene Glycol (EG), Polyethylene (PE) and Polyethylene Terephthalate (PET). It is a second largest producer of Ethylene Glycol in the world with production facilities in Kuwait, USA, Canada, Netherlands, etc. It has a strong credit profile with S&P rating of BBB and Moody's rating of Baa2.
- Saudia Dairy and Foodstuff Company (SADAFCO): SADAFCO is a Saudi Arabia based leading food & beverage company, with operations in the Middle East and Europe. Market leader in KSA's Plain UHT milk, Tomato paste and Ice cream, marketing its core products under the flagship Saudia brand. SADAFCO has strong regional retail network of over 38,000 outlets across Arabian peninsula. It is listed on Saudi Arabian stock exchange with market cap of US$ 3.1bn.
- United Gulf Holding Company (UGH): UGH is a Bahrain based financial services group listed on the Bahrain Stock Exchange. Its activities include asset management, corporate finance advisory and brokerage services. With asset base of US$ 2.8bn as at 30 June 2024, UGB has a track record of incubating and growing businesses.
- KAMCO Invest: Kamco Invest operates in key regional capital markets and is one of the largest investment companies in the GCC in terms of assets under management ("AuM"). Kamco Invest provides a comprehensive range of investment products and services in asset management, investment banking and brokerage. It has AuM allocated across various asset classes and jurisdictions and, since it was established, has acted as investment banker on equity capital market, debt capital market and merger and acquisition transactions with a value exceeding US$ 15.9 bn.
- OSN: OSN is a general entertainment platform in MENA, operating across multiple platforms:
- Over-the-top streaming (OTT) - Owns 55.45% of Anghami, which comprises OSN + streaming along with Anghami's music platform
- Direct-to-home (DTH), Cable fiber & Internet Protocol television (IPTV)
- Business - Large commercial setups & hotels
- United Real Estate Company (URC): URC is one of the leading real estate developers and investors in Kuwait and the MENA region. URC's core business is real estate development and operations, and it has a diversified portfolio of assets that include commercial centers, hotels, residential properties, and high-rise office buildings and mixed use developments. URC's operations also include construction and contracting services, facilities management and project management which are primarily conducted through subsidiaries. It is listed on Boursa Kuwait with market cap of US$ 201mn.
- National Petroleum Services Company (NAPESCO): NAPESCO was founded in 1993 as a private company offering pumping services to the Kuwait energy sector. It is now a leading provider of upstream oilfield services including cementing, stimulation, coiled tubing, hydraulic fracturing, nitrogen and downhole service tools. NAPESCO's shares are listed on Boursa Kuwait Main Market with market cap of US$ 254mn.
- Jassim Transport & Stevedoring Company (JTC): JTC is a Kuwait headquartered inland transportation company with operations in Kuwait, Qatar & Saudi Arabia. It has four core activities that include ports management, contract logistics, equipment leasing and power rental. Listed on Boursa Kuwait with a market cap of US$ 182mn.
- Others: KIPCO directly or indirectly holds more than 20 companies which are engaged in other businesses. The major entities engaged in other businesses are United Education Company, Advanced Technology Company and United Networks Company etc. which are engaged in the business of Education, Healthcare and Satellite communication.[49][50]
Business strategy
[edit]The key elements of the group's strategy are to:[51]
- Maximize value from businesses with a medium to long-term horizon
- Seek to generate sustainable, predictable operating cash flows and ROE over the business cycle
- Selective disposal opportunistic after multi-dimensional and holistic analysis
- Controlling or significant stakes in operating businesses in growth markets
- Partner with global or local businesses with a proven track record
Regional presence
[edit]The group and its associates have a presence in the following countries in the MENA region:[52]
| Company | Present in |
|---|---|
| Burgan Bank | Kuwait, Algeria, Tunisia, Turkey and UAE (representative office in the Dubai International Financial Centre) |
| Jordan Kuwait Bank | Jordan, Cyprus, Iraq and Lebanon (branch of Bank of Baghdad) |
| UGH | Bahrain, Kuwait, Tunisia, Morocco, Malta, Jordan, KSA, UAE, UK, India and Egypt |
| Panther Media Group Ltd (PMG) | Content rights in 22 countries in the MENA region; however, it currently focuses on seven core markets, being the UAE, Saudi Arabia, Kuwait, Qatar, Egypt, Bahrain and Jordan |
| Equate Group and TKOC | Kuwait, USA, Canada, Mexico, Netherlands, Brazil, Singapore, Italy, China, Germany and UAE |
| KARO | Kuwait |
| NAPESCO | Kuwait |
| SADAFCO | Saudi Arabia, Bahrain, Kuwait, Qatar, Jordan and Poland |
| JTC | Kuwait, Qatar, Saudi Arabia |
| ATC | Kuwait |
| United Real Estate Company | Kuwait, Jordan, Egypt, Oman, United Kingdom, Morocco and Lebanon |
Credit ratings
[edit]| KIPCO[53] | Moody's | Fitch Ratings |
|---|---|---|
| Short Term | NP
|
-
|
| Long Term | Ba3
|
BB-
|
| Outlook | Negative
|
Stable
|
Corporate social responsibility
[edit]KIPCO Sponsors 10th Youth Empowerment Symposium
[edit]KIPCO Holding served as the Strategic Sponsor of the 10th Youth Empowerment Symposium (Tmkeen), marking the 10th anniversary since the event’s launch. Over the decade, the symposium hosted more than 30 international leaders, 95 local leaders and 300 growing entrepreneurs. This is a testament to KIPCO’s longstanding commitment to promote entrepreneurship and empowering young leaders. The initiative aimed to provide a platform for youth to exchange ideas, learn from industry experts, and explore opportunities for entrepreneurship.[54]
KIPCO partners with LOYAC to offer training opportunities for teens
[edit]KIPCO’s partnership with LOYAC, a local non-profit organization that aims to empower youth to become impactful leaders in society. Through this partnership, KIPCO will be sponsoring the ‘7 Habits for Highly Effective Teens’ program sessions that will be offered to youth aged 12 to 18 throughout the year. The ‘7 Habits’ is a Franklin Covey Education program. The goals of this life empowerment program include increasing self confidence and self-esteem, being responsible, defining one’s values, recognizing and prioritizing goals and resisting peer pressure. [55]
KIPCO Group inaugurates The Late Salwa Sabah Al Ahmad Al Sabah Stem Cell and Umbilical Cord Center
[edit]Under the auspices of the Minister of Health, HE Sheikh Dr Basel Humoud Al Sabah, KIPCO – the Kuwait Projects Company (Holding) – inaugurated the Late Sheikha Salwa Sabah Al Ahmad Al Sabah Stem Cell and Umbilical Cord Center. The center was built with a donation of KD 7 million made by Masharee Al Khair Charity Organization on behalf of KIPCO Group. This is the first center in the Gulf region to be dedicated to stem cell research and the storage of umbilical cords.[56]
The Protégés Program
[edit]The Protégés is a mentorship program designed to provide young people with opportunities to learn life and leadership skills, through combination of travel, lectures, group activities, challenges and games for around 6 weeks. Around 25 Protégés are selected based on a thorough screening process ensuring that they meet high standards of excellence. KIPCO is the strategic partner of the program and is supported by nine Group companies.[57]
Dyslexia Campaign
[edit]Dyslexia Campaign is KIPCO's initiative for public awareness about Dyslexia. The campaign – which featured TV and press advertising to highlight the problems faced by those people suffering from dyslexia – was the first of its kind in the Persian Gulf region.[58] In 2008 KIPCO won an award for the campaign on dyslexia at Kuwait's first Corporate Social Responsibility (CSR) Awards.[59]
References
[edit]- ^ a b c d KIPCO Annual Report 2023, KIPCO Website, 21 June 2024
- ^ KIPCO Overview, KIPCO Website 28 March 2018
- ^ [1] KIPCO Corporate Website retrieved 17 July 2024
- ^ "EMTN Programme 2018" KIPCO Website 28 March 2018
- ^ NBK Capital report, Arabtimesonline.com, 12 February 2014
- ^ URC Prospectus, LSE 5 May 2007
- ^ Global Research-Kuwait Global Investment House, April 2009
- ^ KAMCO News Kuwait times, 04 June 2014
- ^ KIPCO World, 2014
- ^ "KIPCO share of Wataniya sale deal with QTEL finalized" Kuwait News Agency (KUNA), 13 March 2007
- ^ "Showtime Arabia, Orbit announce TV merger" Business.com, 12 July 2009
- ^ Global Research-GCC Global Investment House, November 2009
- ^ "KIPCO completes US$500m bond issue" Investegate, 12 July 2010
- ^ "Fairfax unit to buy 39% of Gulf Insurance Co." Businessinsurance.com, 20 September 2010
- ^ "KIPCO raises stake in real estate firm URC" Arabianbusiness.com, 25 January 2011
- ^ "Kipco boosts stake in United Industries" Gulfbase.com, 04 July 2010
- ^ "Burgan Bank Concludes Purchase of Eurobank Tekfen" Bloomberg.com, 23 December 2012
- ^ "OSN acquires Pehla" Khaleej Times, 27 August 2013
- ^ "Kuwait's KIPCO takes majority stake in Malta's Fimbank" Reuters.com, 30 May 2010
- ^ KIPCO News Archived 2014-07-14 at the Wayback Machine Gulfbankers.com, 01 April 2014
- ^ "United Industries divests 29% of SADAFCO in special transaction" Mubasher.info, 05 November 2013
- ^ "KIPCO successfully prices US$ 500 mn bond issue" Archived 2014-07-14 at the Wayback Machine RNS Market News, 03 Feb 2014
- ^ "Burgan Bank issues USD500m additional Tier 1 capital" Zawya News, 24 September 2014
- ^ "Rights issue by Burgan Bank" Archived 2016-03-04 at the Wayback Machine Banking Frontiers
- ^ "OSN secures $400 million syndicated financing facility" Arab News, 8 September 2015
- ^ "Kuwait's Burgan Bank sells majority stake in Jordanian bank to parent firm" Reuters, 30 December 2015
- ^ "KIPCO repays KD 80 million bond" Ameinfo, 17 January 2016
- ^ "KIPCO completes US$ 500 million bond issue despite challenging market conditions" Gulf News 24/7, 9 March 2016
- ^ "Burgan Bank issues subordinated bonds worth KWD 100m" GULFBANKERS, 13 March 2016
- ^ "GIG buys Turkish insurer Turins Sigorta" MENAIR, 14 June 2016
- ^ "Burgan Bank successfully issues $500m debut senior bond" Kuwait Times, 19 Sep 2016
- ^ "New bond issue: KIPCO issued international bonds for USD 500.0m maturing in 2027 with a 4.5% coupon" C Bonds, 17 Feb 2017
- ^ "URC has announced a 39.17% acquisition in leading Kuwaiti building materials company, Insha'a Holding" (Press release). United Real Estate Company. 16 March 2017. Retrieved 3 August 2018.
- ^ "UGB Announces Details of the Reorganization" UGB Website, September 13, 2017
- ^ [ "Kuwait's KIPCO issues $331m seven-year bond"] Arabian Business, 28 December 2017
- ^ "KIPCO completes five-year bond issue" Zawya, 8 November 2018
- ^ "KIPCO to raise its capital through a rights issue" Kuwait Times, 2 February 2019
- ^ "Repaid US$500 million bond issued under EMTN programme" KIPCO Corporate Website retrieved 13 August 2019
- ^ "KIPCO Completed its rights issue" Zawya, 24 July 2019
- ^ "KIPCO raises KD 80 million in rights issue" Shares Magazine, 28 June 2024
- ^ "KIPCO completes merger with QPIC" Zawya, 28 June 2024
- ^ "KIPCO completes the sale of its 46% stake in GIG to Fairfax Financial Holdings" Zawya, 28 June 2024
- ^ "Anghami and OSN+ Successfully Complete Milestone Transaction, Creating an Entertainment Powerhouse" PR Newswire, 28 June 2024
- ^ KIPCO Annual Report-2016
- ^ [2] KIPCO Website retrieved 14 June 2024
- ^ [3] KIPCO Website retrieved 3 June 2024
- ^ [4] Boursa Kuwait
- ^ [5] KIPCO Equity Presentation 2024
- ^ [6] KIPCO Equity Presentation 2024
- ^ [7] London Stock Exchange
- ^ [8] KIPCO Equity Presentation 2024
- ^ [9] London Stock Exchange
- ^ [10] KIPCO Annual Report 2023 14 June 2024
- ^ [11] KIPCO Sustainability Report 2023
- ^ [12] Zawya, retrieved August 9, 2024
- ^ [13] Zawya, retrieved August 9, 2024
- ^ "Proteges Third Generation officially launched in Kuwait" Kuwait Times, retrieved July 21, 2014
- ^ "KIPCO Sponsors Dyslexia Awareness Campaign" PRWeb, September 10, 2007, retrieved July 21, 2014
- ^ "KIPCO's Dyslexia Campaign Wins Corporate Social Responsibility Award" Zawya, Jan 23 2008, retrieved July 21, 2014