The Kuwait Stock Exchange is preparing to implement the order of the Public Prosecution regarding the sale of about 30.258 million shares of Kuwait Finance House (KFH), owned by the former General Manager of the Public Institution for Social Insurance, late Fahd Al-Raja’an.
Reliable sources told a local Arabic daily this ownership represents a portfolio owned by Al-Raja’an in the shares of Ahli United Bank, Bahrain, pointing out that the Public Prosecution office informed the stock exchange to take the necessary measures for the sale, which will start from January 15 for a period of 3 working days ending on January 17.
The sources indicated that the liquidation will take place in accordance with the modern controls regulating the compulsory execution processes set by the KSE in cooperation with the Execution Department at the Ministry of Justice and approved by the Capital Markets Authority, noting that the completion of the process will be in accordance with the supply and demand mechanisms used in trading in shares listed on the KSE through the main trading screen. This is to provide an opportunity for the general public who wish to buy without discrimination.
The sources added that the quantity to be sold has a market value of 24.2 million dinars (according to Monday’s closing), while the sale price is subject to change, as the responsible parties control the current market price starting from the 15th of this month, indicating the distribution of the quantity to be sold to all 10 financial brokerage offices equally, at the rate of 3.025 million shares for each licensed brokerage firm.
The sources indicated that the proceeds of selling the shares Al-Raja’an in this process will be distributed over 10 checks that will be issued through the Kuwait Clearing Company, in favor of the Public Prosecution, through the ten brokerage companies that will implement the liquidation.
The concerned authorities were keen to inform the brokerage firms of the need to sell slowly and without collective action or entering sales orders at one time, as it is possible to sell on the second or third day according to the timetable set by the rules regulating forced execution in accordance with the amendments, explaining that the stock exchange has the right, if it estimates, to request the seller to divide the process of selling the securities subject to execution into more than one trading session, not exceeding 3 working days.
It is also possible to extend the period of selling the securities if it is not possible to sell them in whole or in part, until they are completed.
The Kuwait Stock Exchange carried out a process of complete automation of liquidation or forced execution operations, which includes listed and unlisted shares against which judicial rulings or instructions for liquidation and sale have been issued.
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