KUWAIT: Boursa Kuwait witnessed on Tuesday the listing of Ali Alghanim & Sons Automotive Company KSCC, marking a historic milestone as the first family-owned company and automotive agents to be listed on an exchange across the Gulf markets. The company stated the public offering which took place a few days prior was oversubscribed approximately 11 times, mirroring investors’ trust, considering the high demand during the subscription process for 45 percent of the company’s shares.
The company’s decision to be listed on the stock market was made in line with the forward-looking approach to current global market trends and the positive outlook for the near future. It also supports the company’s vision to expand investment horizons, specifically in terms of faltering family-owned companies on both regional and international levels, as it reaches the third generation, where majority of economic indicators show that public shareholding companies will dominate the investment scene in the near future.
The company also stated that the official listing on the Kuwait bourse stems from its sense of responsibility as a leading company in the region in general, and in Kuwait specifically, which aims at adopting the principles of transparency and governance. It also seeks to expand its scope of work, which will contribute to creating unique employment opportunities for youth, while deploying the company’s considerable capabilities and exceptional cadres that represent a further driving force enabling it to fulfill its stated objectives.
Fahad Ali Alghanim, Chairman of Ali Alghanim & Sons Automotive Company, emphasized on the listing on the exchange, stating the outstanding demand by local and foreign investors witnessed during the subscription process clearly demonstrates their deep-rooted trust in the company. This in turn, poses a substantial responsibility on Ali Alghanim & Sons Automotive Company to ensure stakeholder needs are diligently met.
“We take pride in being the first family-owned Gulf automotive company to be listed on one of the region’s leading stock exchanges, and we hope to see other family companies follow suit, as we strongly believe in the added value and true benefits it brings to the national economies,” Alghanim added.
Alghanim attributed the reasons behind taking this step to the challenges faced by family-owned companies worldwide, clarifying that key indicators show that around 70-80 percent of family-owned companies on an international level are collapsing and faltering as they reach the third generation, as well as being subject to several issues as a result to the succession of generations and diversity of viewpoints.
“Accordingly, we found it prudent to make use of these experiences and list the company on Boursa Kuwait, taking into account the fact that listed companies enjoy a high level of transparency and governance. This supports the business’ plans to expand inside and outside of Kuwait, and eventually increasing revenues and profits,” he said.
Ali Alghanim & Sons Automotive is the official agent for BMW, Land Rover, Rolls-Royce, McLaren, Geely and Great Wall Motors in Kuwait, in addition to owning renowned international agencies in the fields of oil, batteries and tires. The company is also a key shareholder in both BMW and Mini in Iraq and Egypt.