Leading manufacturer and distributor of food, beverage, FMCG and pharmaceutical products in the Gulf Mezzan Holding’s private placement of a secondary offering of 30 per cent has been oversubscribed more than two times.

The Watani Investment Company (NBK Capital), the investment banking arm of the National Bank of Kuwait, which led in its capacity as the lead manager, announced its successful closing, said a statement.

The placement raised KD65.8 million ($217.6 million) through the sale of 88.95 million shares, it said.

The offering presented investors with access to one of the most defensive, protected and private sectors in the Gulf through one of the largest operators in this sector.  

Faisal A Al Hamad, chief executive officer, NBK Capital, said: “The placement generated strong demand from local retail investors and private companies and local, regional and global institutional investors, government investment arms, fund managers and corporates.

“The success of this placement reflects the growing interest in accessing Kuwait’s and the Gulf’s food and FMCG sector, which continues to be controlled by a handful of private, family-owned companies. With this private placement, and the coming listing, Mezzan Holding will be one of the few companies in the Gulf that provides investors with deep access to this defensive sector.”

Khalid Jassim Al Wazzan, chairman, Mezzan, said: “We are pleased to announce the on-schedule closing and oversubscription of the secondary offering and look forward to becoming a publicly traded company on the Kuwait Stock Exchange.

“With the listing of our 70-year old company, we ensure the company’s success in the future and reinforce the company’s position as one of the pillars of the Kuwaiti economy.”  

The offering’s objective was to expand the company’s shareholder base ahead of the previously-announced planned listing, said the statement.

Mezzan Holding was granted preliminary listing approval from the Capital Markets Authority on March 26 and now intends to list on the Kuwait Stock Exchange next month, it added. - TradeArabia News Service