Following its application and qualification as an International Operator with regard to the privatization process of Boursa Kuwait, organised by the  Capital Markets Authority (CMA) of Kuwait, Athens Stock Exchange  decided to participate as a technical, operational and business services provider for Boursa Kuwait by forming a consortium with the largest possible participation from the qualified Local Companies to proceed to the final bidding process.

On February 14^th 2019, the Consortium comprising of Athens Stock Exchange (ATHEX), as the qualified international operator and a wide group of leading listed, financial groups in Kuwait, namely Arzan Financial Group (ARZAN), First Investment Company (FIC) and National Investments Company (NIC), have been awarded the bid, by way of a closed bidding process organised by the CMA, for a 44% equity stake in Boursa Kuwait, the only market operator and one of the leading stock exchanges in the Gulf area.

The Consortium offered 0.237 Kuwaiti dinar (EUR0.69) per share for the stake purchase. A 6% stake is owned by the Public Institution For Social Security (PIFSS), while the remaining 50% will be sold to the public through an IPO process. The resulting ATHEX's participation in Boursa Kuwait's equity stake is ca. 0.8%, amounting to an investment of approximately EUR1 million.

The active involvement of ATHEX in Boursa Kuwait is part of the Group's strategy to leverage its trading and post-trading technical and business know-how and systems in running successfully the Common Platform concept, with Cyprus Stock Exchange (CSE) since 2008, in providing systems and services to the Hellenic National Natural Gas System Operator (DESFA), in designing and supporting solutions for third parties in the financial industry and setting up to provide systems and services to the Hellenic Energy Exchange (ENEX).

AXIA Ventures Group Limited acted as exclusive financial advisor to ATHEX in the transaction, while Al Tamimi & Company acted as the legal advisor.

As a next step, ATHEX along with its Consortium partners will closely cooperate with the CMA and Boursa Kuwait towards the implementation of the common strategic endeavours. The Consortium intends to support the expansion and development of Boursa Kuwait through the introduction of a number of new products, services and systems that will support the flow of capital from investors, both local and international, to issuers listed in Boursa Kuwait.

Socrates Lazaridis, ATHEX CEO, said “ATHEX as a market operator and as a listed entity has the necessary experience and with the cooperation of its partners plans to have an active involvement in Boursa Kuwait as a technical and operations solution provider and business development consultant. The goal is to enhance Boursa Kuwait's profile in the region and produce additional value through the close strategic cooperation of the two market operators in the future”.

Bader Al-Kharafi, the Consortium's representative, said “This groundbreaking investment will prove a milestone in the development and growth of Boursa. The recent overhaul of the Boursa and its inclusion as an emerging market on several important international indices, including FTSE and MSCI shows that Kuwait's stock exchange is an attractive destination for local and international investors”.

National Investments Company, is a Kuwait-based company engaged in investment and asset management activities. The Company is organized, along with its subsidiaries, into seven business segments, including Assets and Portfolio Management, focused on discretionary, non-discretionary and custodial accounts of institutional and high net worth investors; Real Estate, focused on investing in the local, regional and international real estate markets; Corporate Finance, focused on financial advisory and mergers and acquisitions services; Private Equity, focused on direct investments; Treasury, focused on investment advice; Research, focused on asset management research and electronic trading systems.

Arzan Financial Group, is a Kuwait-based public shareholding company that provides personalized financial management and advisory services. The company's business lines include in Wealth Management, Credit and Debt Collections, Asset Management, and Venture Capital Investments. The Wealth Management department advises clients on real estate, private equity and development investments. On the Corporate Credit side, Arzan offers its services to small & medium businesses facilitating working capital, along with factoring services to those who deal in the wholesale and retail business. The Asset Management and Brokerage department offers both brokerage and investment platform services across the Middle East market. The Venture Capital department invests in innovative tech startups in MENA, U.S. and Europe.

First Investment Co, is a Kuwait-based public shareholding company principally engaged in the provision of investment and financial services in accordance to the Islamic Sharia principles. The Company invests in private equity, venture capital, public equity and asset management. The Company's business is structured into three segments: the Direct Investment segment, which is responsible for establishing new companies, advising on mergers and acquisitions and managing real estate investments; the Asset Management segment, which is engaged in portfolio management, mutual fund and treasury services, and the Funds Management segment, which manages three funds, namely First Gulf Equity Fund, First Arabian Equity 2000 Fund, and Muthanna Money Market Fund.

The Athens Stock Exchange, since its establishment in 1876, has been consistently participating in the financial and business developments of the capital markets.

The Athens Exchange Group consists of the publicly traded company "Hellenic Exchange-Athens Stock Exchange (ATHEX)” (Symbol: EXAE), the “Hellenic Central Securities Depository (ATHEXCSD)” and “Athens Exchange Clearing House (ATHEXClear)”. The group avails the expertise, infrastructure and appropriate certification regarding the following:

(1)     The organization and operation of exchange markets.

(2)     The clearing of transactions both in cash and derivatives products, constituting one of the seventeen (17) licensed Central Counter Parties in the EU, in accordance with the EU Regulation 648/2012 (EMIR), already providing clearing services for all Athens Exchange (ATHEX) markets - the Cash Market, Derivatives Market and the "Alternative Market - EN.A.".

(3)     The development and operation of a private network for accessing the Hellenic Financial Ecosystem, providing access points in Greece, United Kingdom and Cyprus (ATHEX Exchange Network).

(4)     The provision of systems, operations and services to the financial community (Investment firms, banks), market operators (Cyprus Stock Exchange - CSE, Hellenic National Natural Gas System Operator – DESFA and soon to the Hellenic Energy Exchange - ENEX) and third parties (colocation, application development, etc.).

The Athens Stock Exchange, which is a recognized "Designated Offshore Securities Market (DOSM) under Regulation S of SEC - USA, and by the MPFA of Hong Kong,  through its markets offers solutions and financing tools to businesses, expands investor choice by providing a safe, stable and efficient environment in full alignment with international practices and the European regulatory framework. It holds the ISO 22301:2012 international standard for Business Continuity, for all its companies, including all its operations as well as the products & services it provides.

The companies of the group are active members of the Federation of European Securities Exchanges (FESE), the World Federation of Exchanges (WFE), Federation of European and Asian Stock Exchanges (FEAS), the European Central Securities Depositories Association (ECSDA), and the European Association of CCP Clearing Houses (EACH).

In a period when the role of capital markets in exploring alternative ways of financing companies is significantly enhanced, the Athens Exchange Group has taken a series of initiatives to increase the attractiveness of the Greek Capital Market and to promote Greek companies to the international investment community.

Summary information on the market and the Athens Exchange Group can be found here and the website www.athexgroup.gr.