Alghanim Industries Ltd, a Kuwaiti family-owned business, is attempting to raise roughly $1 billion through a prospective initial public offering, according to sources with knowledge of the situation.
The conglomerate, which is one of the largest privately-owned firms in the country, is working with banks including Credit Suisse Group AG on the possible listing.
Alghanim Industries is also in talks with other regional and international banks “about roles on any IPO, the people said, asking not to be identified as the matter is private,” Bloomberg said.
“Deliberations about a potential listing are in the early stages and no final decisions have been made, according to the people. Kutayba Alghanim, the company’s chairman, wrote in a letter to staff in August that he was exploring the possibility of listing a minority stake on Kuwait’s main market,” the news agency said.
According to Alghanim’s website, the company which traces its roots back to more than 100 years, employs over 14,000 people and operates in over 30 businesses across the automobiles, retail, construction materials and financial services sectors.
Alghanim owns dealership rights to car brands such as Cadillac, Honda and Lincoln and is also the franchise operator of Costa Coffee in Kuwait and Wendy’s Co. in the Middle East.
Representatives for both Alghanim Industries and Credit Suisse declined to comment.
The Middle East has been a bright spot for IPOs this year, with equity markets in the region boosted by surging in oil prices. To be sure, most of the transactions have taken place in Saudi Arabia and the UAE.
Dubai is looking to raise $180 million IPO of its road-toll collection system, the third listing in the emirate this year.
According to the Chief Executive of Kuwait, Mohammad Saud Al-Osaimi, additional companies are expected to list in the near future, followed by enterprises that are owned by the government.
