Kuwaiti Operator Launches Stock Market Floatation

Kuwait's third mobile operator, Kuwait Telecom Company has launched its planned IPO on the local stock market by selling 25% of the company in order to raise around US$98 million. The company plans to launch its network in the country later this year.

Last November, Saudi Telecom (STC) won the auction for a 26 percent stake in Kuwait Telecom Company for a payment of US$908 million. Under the terms of setting up the 3rd mobile operator, the 26% stake was to be sold to a strategic investor - with 50% listed on the local stock market and the remaining 24% held by government institutions.

STC president Saud al-Daweesh said the new company aims to secure 30% of the market within 10 years.

Kuwait has two operators, Zain and Wataniya Telecom. According to figures from the Mobile World, the country ended the first half of the year with just over 2.9 million mobile subscribers - representing a penetration level of 113%. It should be noted that a large percentage of that are from ex-pats using local SIM cards.

Posted to the site on 24th August 2008