Kuwait’s national stock market Boursa Kuwait has received approval from the country’s Capital Markets Authority (CMA) to reorganize promotion requirements for its “Premier Market”.
Premier Market is considered the ideal destination for investors in terms of its transparency and liquidity.
The new criteria are expected to increase transparency and the issuer base in the ‘Premier Market’ by potentially raising the number of mid to large-sized companies in it, all of which would positively reflect the growth of the Kuwaiti capital market and support its investors.
The firms listed in Premier Market are required to maintain an average market capitalization greater than or equal to $256 million (KD78 million) as a minimum, which is the median market capitalization of all exchange-listed companies. This filter was developed by Boursa Kuwait, in partnership with the CMA, and will be updated whenever the market capitalization of the listed companies undergo significant changes.
A Boursa Kuwait proposal to postpone the reclassification of listed companies from the ‘Premier Market’ to the ‘Main Market’ was also approved by the Capital Markets Authority Commissioners’ Council.
The CMA has supported the reform of the promotion criteria as it seeks to improve the overall Kuwaiti capital market by raising the level of transparency and enabling more companies to enter the flagship market of Boursa Kuwait, raising the market’s ability to attract local and foreign investors.
According to Boursa Kuwait spokesman, “It should be emphasized that a listed company eligible for promotion to Premier Market must officially accept its promotion to Premier Market. Otherwise, it can opt to stay in the Main Market.”
“It is worth noting that most investment products are more effective when there is more trading and liquidity on a particular stock and that most mid to large companies that enjoy high liquidity levels and continuous communication with their investors usually attract local and international institutional investors on a bigger scale,” he further added.
Boursa Kuwait, formerly the Kuwait Stock Exchange (KSE), aims to entice more investors to the Kuwaiti capital market through its series of Corporate Days, showcasing some of its standout listed companies and the investment opportunities that reside in the Kuwaiti capital market.
It is also working to establish a strong and efficient liquidity and transparency financial market that can effectively place issuers and investors in contact with each other to create an established capital market that is a pioneer in the region.