By Andy Sambidge
Conglomerate wins regulator's approval to list 30% of company on Kuwait Stock Exchange
Kuwaiti conglomerate Mezzan Holding on Monday said on Wednesday it has received preliminary regulatory approval to list on the Gulf state's stock exchange.
The company, one of the largest manufacturers and distributors of food, beverage and pharmaceutical products in the Gulf, said in a statement that it has received approval from Kuwait's Capital Market Authority to list its shares.
The objective of the offering of 88.95 million shares, representing 30 percent of the company, is to expand the company's shareholder base, the statement said.
Investor appetite in the Gulf's growing consumer sector has been buoyant leading to a surge in mergers and acquisitions activity in recent years.
In 2011, Coca-Cola Co bought a stake in Saudi Arabia-based beverage company Aujan Industries for $980 million seeking to tap into demand for non-alcoholic drinks in the Middle East.
Mezzan Holding is a manufacturer, distributor, and provider of food, beverage, and FMCG products and services in Kuwait, the UAE and Qatar, with a growing Middle East footprint.
In 2014, Mezzan recorded KD182.5 million in revenues, up 28.2 percent from 2013, and net profit of KD16.1 million, up 22.9 percent from 2013.
Mezzan Holding incorporates 29 subsidiaries, operates in seven countries, and has 7,500 employees.
The company manufactures chips and snacks, meats, bottled water and canned foods through production facilities in Kuwait, Qatar, and the UAE.