AlTerkait: Al Safat Investment Co relists on Boursa Kuwait in landmark move
Trading to commence on October 11 * Company enters next phase of growth
* We are proud of our achievements and restoring the company’s stability reflects the success of plans.
* We thank shareholders for their support during the past period to become stronger.
* Financial solvency enabled the company to confront previous challenges.
* We are discussing a takeover of strategic shares in operational companies with revenues.
* We own influential shares in operational entities, including some in Egypt and UAE.
* Investment map of Al Safat includes many activities through subsidiaries.
* The achievements will allow the company to gain new opportunities.
* We are looking forward to new diversified projects and partnerships, including in the technology sector.
* Al Safat Investment is interested in profitable small and medium projects.
KUWAIT: Chairman of Al Safat Investment Company Abdullah Hamad AlTerkait said relisting the company on Boursa Kuwait is the result of the company’s continued efforts, as well as that of its board of directors and executive management during the preceding years and long-term reforms. He said the completion of the financial structure and going forward with settling the company’s debts had a great impact on Al Safat in recovering its competitive capabilities and the start of a new stage that guarantees the strengthening of shareholder equity in the future.
AlTerkait said during a press conference, which Al Safat Investment held on the occasion of its relisting, that the company was keen during the past period to present a bundle of services and products in accordance with its adopted vision. Al Safat Investment is looking forward to become one of the leading investment entities locally and contribute to the prosperity of the Kuwait market through a local and regional presence that includes the Middle East, North Africa and Asia. The company is also looking forward to presenting a business model that reflects the real situation of markets through presenting promising opportunities that emulate the aspirations of capital owners, he added.
Historic moment
AlTerkait added Al Safat shares will be traded from Oct 11, 2021, which is a historic moment in the company’s march as it enters the next stage of growth and development. He said Al Safat is proud of the achievements it made during the recent years and the dynamic transformation in its activities and operations following a period that was not void of recession, debts and court cases, and this comes after the company met all conditions to be listed.
Best practices
AlTerkait said relisting Al Safat shares on Boursa Kuwait represents a launchpad towards a dynamic and varied investment environment that is built on best international practices, “which makes us look for increasing the private sector’s contribution to the growth and development of the economy”. He said Al Safat Investment is looking forward to entering new projects including the technology sector, besides discussing mergers and acquisitions under the group’s umbrella, adding there is an increased interest in seizing promising opportunities that guarantee good returns for the company. He said listing on the bourse will provide an added value that constitutes extra keenness to improve its financial situation, besides the increase of efficiency, transparency and credibility levels of the company.
Strengthening company status
AlTerkait said joining an elite group of listed companies on Kuwait bourse once again will strengthen Al Safat’s status in the capital market, and this will increase opportunities for new investors and attract the attention of funds and investors who are considered strategic partners who are experienced and have added value.
About the company’s financial situation, AlTerkait said the approximate book value of shares as of Dec 31, 2020 is 87.4 fils per share, adding that the positive results achieved by Al Safat Investment during recent years reflects the strength of operational and strategic work it is carrying out.
Financial solvency
He said financial solvency enabled the company to face various challenges inflicted by the coronavirus pandemic since the start of 2020 and achieve an extraordinary financial and operational performance, which allows for continuing with the success march and take the company to wider horizons. AlTerkait added that the company has new a strategy that focuses on achieving ambitious goals representing its culture, which is basically interested in increasing revenues and benefiting from promising investments through maintaining supervisory mechanisms and seeking feasible opportunities.
Strategic acquisitions
AlTerkait said the company is interested in acquiring strategic shares in operational companies that enjoy abundant cash flow which will contribute to increasing revenues for the parent company, adding that Al Safat has strategic ownerships and shares in listed companies, including 20.9 percent in Synergy Holding and 8.25 percent of Al-Shuaiba Industrial Company, in addition to other stakes.
About associate entities that are owned by the company, he said Al Safat Investment’s map includes strategic shares in Al-Qudra Holding – UAE, which is operating through its subsidiaries in real estate investment, financing, healthcare, oil, gas, project management and the hospitality sector both in the UAE and the world. It also includes shares in local companies such as Shuaiba Industrial Company that is involved in various industrial and services aspects.
AlTerkait said Al Safat’s ownership includes Kuwait Medical Center Holding Co that is involved in building and managing hospitals and health centers and trading in medical equipment and supplies, in addition to building medical laboratories equipped with state-of-the-art medical technologies. He said in addition to participating in health projects in Kuwait and abroad, as it has major ownerships in the Liquid Capital General Trading, Al-Asriyah Printing, Publishing and Distribution and the Middle East Chemicals Manufacturing Company.
The company umbrella
AlTerkait said Al Safat Investment portfolio has a series of various operational entities including Al Safat Holding, Al Safat Consulting, Dar Al Safat General Trading, The Roots Stock Brokerage in Egypt, Al Safat Palm Real Estate and Al-Ahmadi Project, in addition to Touristic Prosperity Real Estate Company, which has its hospitality activities concentrated in Lebanon. He explained that supporting and developing activities of the said companies will have direct effects on increasing the total revenue of the company portfolio to achieve the sought after growth, and in turn maximize shareholders’ equity. Al Safat Investment also aims to provide its subsidiaries and associates promising advantages in the market. AlTerkait said Al Safat Investment seeks to establish and operate major funds that target sectors such as food and beverages, venture capital, education and others.
Goals and purposes
AlTerkait said the company concentrates on small and medium projects within operational frameworks, including investment in real estate, financial, medical, industrial, energy, farming, food and other sectors through established specialized companies or purchasing shares and bonds of these companies or managing projects in various sectors. He said the group is working through one of its subsidiaries on focusing on industrial operational activities, as “we are working on building a new chemical plant in Subhan over 2,000 sq m, which will contribute to meeting the local market demands and increase company sales”.
He said Al Safat is working on managing finances of public and private establishments and investing the money in various economic sectors and preparing reports on technical and economic evaluations and consultations, as well as presenting feasibility reports on projects related to investment. He said the investment aims of the company include lending and borrowing and presenting loans to others, while adhering to the rules of the Central Bank of Kuwait.
AlTerkait added the company’s role includes working as an issuance manager for bonds issued by companies and authorities, act as an investment trustee and trade in shares and bonds of local and international government companies, in addition to other operational activities, as the company was licensed by the Capital Markets Authority (CMA) to carry out the following activities: Investment advisor, investment portfolio manager, joint investment manager, investment supervisor and underwriting agent. “We also seek to diversify the activities and company licenses according to a preplanned strategy,” he added. He said assets that are managed for the company’s clients reached nearly $120 million, and Al Safat seeks to increase this.
The working team
AlTerkait said Al Safat Investment looks to the future with optimism, as after completing all legal challenges that burdened it for around 10 years, the achievements that were made lately will allow for a new page of opportunities and diversifying investments, while the company is committed to a strategy that was prepared despite the difficulties that will continue until 2023.
AlTerkait thanked the board of directors, executive administration and company employees for their efforts to overcome consecutive crises – the latest of which is the repercussions of the coronavirus pandemic – which brought back Al Safat Investment to the right path again. He lauded the role of shareholders and their continued support to enable the company restore its status and resilience.
