KIPCO

Last updated
Kuwait Projects Company (Holding)
Company type Public
Industry Holding company
Founded2 August 1975 as Kuwait Investment Projects Company
HeadquartersKIPCO 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)
ProductsCommercial banking, petrochemical & oil services, foodstuff, asset management & investment banking, media, real estate, healthcare, logistics and education
RevenueIncrease2.svg US$ 4.2 billion (2023) [1]
Increase2.svg US$ 98 million (2023) [1]
Total assets Increase2.svg US$ 40.1 billion (2023) [1]
Total equity Increase2.svg US$ 2 billion (2023) [1]
Number of employees
16000 [2]
Website www.kipco.com 29°22′33″N47°59′11″E / 29.37583°N 47.98639°E / 29.37583; 47.98639

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]

Contents

History

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

1988Acquisition of United Gulf Bank (UGB) [5]
1995Acquisition of stake in United Real Estate Company (URC) [6]
1995Acquisition of stake in Burgan Bank
1995Formation of Gulf DTH (Showtime)
1996Acquisition of stake in Gulf Insurance Company (GIC) – now Gulf Insurance Group [7]
1996Acquisition of United Industries Company (UIC)
1996Acquisition of SADAFCO - Saudia Dairy and Foodstuff Company - by UIC
1998Formation of KAMCI – KIPCO Asset Management Company [8]
1999Acquisition of stake in Wataniya Telecom [9]
2006Establishment of US$2 billion EMTN programme [10]
2007Sale of Wataniya Telecom
2009Merger of Showtime and Orbit to create OSN [11]
2009Completion of a 7-year US$500 million bond issue under EMTN programme [12]
2010Completion of a 7-year US$500 million bond issue under EMTN programme [13]
2010Sale of 39.2% stake in GIC to Fairfax [14]
2010KIPCO acquires 34% direct stake in URC by subscribing to rights issue in Dec’10 [15]
2010Acquisition of 40.3% stake in UIC, 28.4% during rights issue and 11.9% from KAMCO in Sep’10 [16]
2012Burgan bank acquires 99.3% in Eurobank Tekfen (rebranded as Burgan Bank – Turkey) [17]
2013OSN 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]
2013UIC purchases additional 10.8% stake in Qurain Petrochemical Industries Company(QPIC) [20]
2013UIC divests 29% stake in SADAFCO for KD66 mn [21]
2014Completion of a 5-year US$500 million bond issue under EMTN programme [22]
2014UIC divests remaining 11% stake in SADAFCO for KD25mn
2014Burgan Bank completed the issuance of US$500mn perpetual bond [23]
2014Burgan Bank successfully raised capital worth KD102.6 million through a rights issue [24]
2015OSN secures second Syndicated Financing Facility for US$400 million [25]
2015KIPCO through its subsidiary acquired 51.2% stake in Jordan Kuwait Bank from Burgan Bank [26]
2016KIPCO repays KD 80 million bond [27]
2016Completion of a 7-year US$500 million bond issue under EMTN programme [28]
2016Burgan Bank completed the issuance of a KWD 100 million Tier 2 Capital issuance [29]
2016GIG acquires 90% stake in Turkish non-life insurer [30]
2016Burgan Bank successfully completed issuance of 5 year, US$500mn bond under its Medium term notes programme [31]
2016KIPCO repaid US$500mn bond issued under the EMTN programme in October 2016
2017Successfully completed issuance of 10 year US$500mn bond under its EMTN programme with simultaneous tender of ~53% of its EMTN 2019 [32]
2017URC announces 40% acquisition in Insha'a Holding. [33]
2017United Gulf Bank (UGB) has undergone corporate reorganization (in September 2017) and has split its operations across a holding company - United Gulf Holding Company B.S.C. (UGHC) and the regulated banking entity- UGB. [34]
2017Completed first ever seven-year corporate dinar bond issue of KD 100 million maturing in December 2024 [35]
2018Completed a five-year KD 100 million corporate dinar bond issue maturing in November 2023 [36]
2019Announced a rights issue of 453 million fully underwritten shares [37]
2019Repaid US$ 500 million bond issued under EMTN program matured in February 2019 [38]
2019KIPCO Completed its rights issue & raised KD 95.08 million in equity [39]
2021KIPCO Completed its rights issue of 640 million shares (offer was oversubscribed), and KIPCO raised KD 80 million in equity [40]
2022In 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]
2023Completed 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]
2024In April 2024, announced the completion of OSN+ and Anghami (NASDAQ: ANGH) transaction [43]

Corporate governance

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

NamePosition
Sheikh Hamad Sabah Al Ahmad Al SabahChairman
Sheikh Abdullah Naser Sabah Al Ahmad Al SabaVice Chairman
Sheikha Dana Naser Sabah Al Ahmad Al SabahExecutive Board Member
Abdullah Yacoub BisharaIndependent Board Member
Faisal Hamad Al AyyarNon-Executive Board Member

[45]

Executive management

NamePosition
Sheikha Dana Naser Sabah Al Ahmad Al SabahGroup Chief Executive Officer
Samer KhanachetDeputy Group Chief Executive Officer
Sunny BhatiaGroup Chief Financial Officer
Sheikh Sabah Mohammad Abdulaziz Al SabahGroup Chief Strategic Projects Officer
Khaled Abdul Jabbar Al SharradGroup Chief HR & Admin Officer, Board Secretary
Moustapha Samir ChamiDeputy Group Chief Financial Officer
Mohammad Abdullah Al HubailDeputy Group Chief of HR & Admin Officer
Ghada KhalafGroup Senior Vice President – Investments
Samer AbbouchiGroup Senior Vice President – Investments
Adel Jassem Al WaqayanGroup Treasurer
Eman Mohammad Al AwadhiGroup Senior Vice President – Corporate Communications & Investor Relations
Riyad Mohammed HanbaliGroup Vice President – Internal Audit

[46]

Shareholding structure

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

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 BankingPetrochemicalFoodstuffAMIBMediaReal EstateOil Services/ Logistics
 Burgan BankEquateSADAFCOUGHKAMCO InvestOSNUnited Real Estate CompanyNAPESCOJTC
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

Business strategy

The key elements of the group's strategy are to: [4]

Regional presence

The group and its associates have a presence in the following countries in the MENA region: [49]

CompanyPresent in
Burgan BankKuwait, Algeria, Tunisia, Turkey and UAE (representative office in the Dubai International Financial Centre)
Jordan Kuwait BankJordan, Cyprus, Iraq and Lebanon (branch of Bank of Baghdad)
UGHBahrain, 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 TKOCKuwait, USA, Canada, Mexico, Netherlands, Brazil, Singapore, Italy, China, Germany and UAE
KAROKuwait
NAPESCOKuwait
SADAFCOSaudi Arabia, Bahrain, Kuwait, Qatar, Jordan and Poland
JTCKuwait, Qatar, Saudi Arabia
ATCKuwait
United Real Estate CompanyKuwait, Jordan, Egypt, Oman, United Kingdom, Morocco and Lebanon

Credit ratings

KIPCO [50] Moody'sFitch Ratings
Short Term
NP
-
Long Term
Ba3
BB-
Outlook
Negative
Stable

Corporate social responsibility

The Protégés Program

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. [51]

Dyslexia Campaign

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. [52] In 2008 KIPCO won an award for the campaign on dyslexia at Kuwait's first Corporate Social Responsibility (CSR) Awards. [53]

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References

  1. 1 2 3 4 KIPCO Annual Report 2023, KIPCO Website, 21 June 2024
  2. KIPCO Overview, KIPCO Website 28 March 2018
  3. KIPCO Corporate Website retrieved 17 July 2024
  4. 1 2 3 "EMTN Programme 2018" KIPCO Website 28 March 2018
  5. NBK Capital report, Arabtimesonline.com, 12 February 2014
  6. URC Prospectus, LSE 5 May 2007
  7. Global Research-Kuwait Global Investment House, April 2009
  8. KAMCO News Kuwait times, 04 June 2014
  9. KIPCO World, 2014
  10. "KIPCO share of Wataniya sale deal with QTEL finalized" Kuwait News Agency (KUNA), 13 March 2007
  11. "Showtime Arabia, Orbit announce TV merger" Business.com, 12 July 2009
  12. Global Research-GCC Global Investment House, November 2009
  13. "KIPCO completes US$500m bond issue" Investegate, 12 July 2010
  14. "Fairfax unit to buy 39% of Gulf Insurance Co." Businessinsurance.com, 20 September 2010
  15. "KIPCO raises stake in real estate firm URC" Arabianbusiness.com, 25 January 2011
  16. "Kipco boosts stake in United Industries" Gulfbase.com, 04 July 2010
  17. "Burgan Bank Concludes Purchase of Eurobank Tekfen" Bloomberg.com, 23 December 2012
  18. "OSN acquires Pehla" Khaleej Times, 27 August 2013
  19. "Kuwait's KIPCO takes majority stake in Malta's Fimbank" Reuters.com, 30 May 2010
  20. KIPCO News Archived 2014-07-14 at the Wayback Machine Gulfbankers.com, 01 April 2014
  21. "United Industries divests 29% of SADAFCO in special transaction" Mubasher.info, 05 November 2013
  22. "KIPCO successfully prices US$ 500 mn bond issue" Archived 2014-07-14 at the Wayback Machine RNS Market News, 03 Feb 2014
  23. "Burgan Bank issues USD500m additional Tier 1 capital" Zawya News, 24 September 2014
  24. "Rights issue by Burgan Bank" Archived 2016-03-04 at the Wayback Machine Banking Frontiers
  25. "OSN secures $400 million syndicated financing facility" Arab News, 8 September 2015
  26. "Kuwait's Burgan Bank sells majority stake in Jordanian bank to parent firm" Reuters, 30 December 2015
  27. "KIPCO repays KD 80 million bond" Ameinfo, 17 January 2016
  28. "KIPCO completes US$ 500 million bond issue despite challenging market conditions" Gulf News 24/7, 9 March 2016
  29. "Burgan Bank issues subordinated bonds worth KWD 100m" GULFBANKERS, 13 March 2016
  30. "GIG buys Turkish insurer Turins Sigorta" MENAIR, 14 June 2016
  31. "Burgan Bank successfully issues $500m debut senior bond" Kuwait Times, 19 Sep 2016
  32. "New bond issue: KIPCO issued international bonds for USD 500.0m maturing in 2027 with a 4.5% coupon" C Bonds, 17 Feb 2017
  33. "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.
  34. "UGB Announces Details of the Reorganization" UGB Website, September 13, 2017
  35. [ "Kuwait's KIPCO issues $331m seven-year bond"] Arabian Business, 28 December 2017
  36. "KIPCO completes five-year bond issue" Zawya, 8 November 2018
  37. "KIPCO to raise its capital through a rights issue" Kuwait Times, 2 February 2019
  38. "Repaid US$500 million bond issued under EMTN programme" KIPCO Corporate Website retrieved 13 August 2019
  39. "KIPCO Completed its rights issue" Zawya, 24 July 2019
  40. "KIPCO raises KD 80 million in rights issue" Shares Magazine, 28 June 2024
  41. "KIPCO completes merger with QPIC" Zawya, 28 June 2024
  42. "KIPCO completes the sale of its 46% stake in GIG to Fairfax Financial Holdings" Zawya, 28 June 2024
  43. "Anghami and OSN+ Successfully Complete Milestone Transaction, Creating an Entertainment Powerhouse" PR Newswire, 28 June 2024
  44. KIPCO Annual Report-2016
  45. KIPCO Website retrieved 14 June 2024
  46. KIPCO Website retrieved 3 June 2024
  47. Boursa Kuwait
  48. KIPCO Equity Presentation 2024
  49. London Stock Exchange
  50. KIPCO Annual Report 2023 14 June 2024
  51. "Proteges Third Generation officially launched in Kuwait" Kuwait Times, retrieved July 21, 2014
  52. "KIPCO Sponsors Dyslexia Awareness Campaign" PRWeb, September 10, 2007, retrieved July 21, 2014
  53. "KIPCO's Dyslexia Campaign Wins Corporate Social Responsibility Award" Zawya, Jan 23 2008, retrieved July 21, 2014