By Dylan Bowman
Gulf state's third mobile phone operator expects up to 700,000 Kuwaitis to buy shares.
Kuwait's third mobile phone operator is looking to raise 25 million dinars ($93 million) in its initial public offering (IPO) next week, a member of the company's founding committee said on Tuesday.
Kuwait Telecommunications Co, which was given final approval by Kuwait's cabinet last month, is selling 50 percent of its capital in the IPO open only to Kuwaiti nationals that starts on Aug. 24 and closes Sept. 18.
Fuad Al-Hajeri said the company expects up to 700,000 Kuwaitis to buy shares in the company, newswire Bloomberg reported on Tuesday.
"We're selling 250 million shares at 100 fils each, with 5 fils for service fees," Al-Hajeri said. "We plan to raise 25 million dinars which will go directly to the company. We expect between 500,000 and 700,000 people to buy shares."
Saudi Telecom will hold a 26 percent stake in Kuwait Telecommunications after winning the licence last year, while the government will retain the remaining 24 percent stake.
Al-Hajeri said the company plans to list its shares on the Kuwait bourse in 2010, according to Bloomberg.
Kuwait Telecommunications, which is scheduled to begin operating in November, will compete with Mobile Telecommunications Co (Zain) and National Mobile Telecommunications Co (Wataniya).