Kuwait-Mubasher: The number of delisting companies from Kuwait Stock Exchange (KSE) has recently increased; 17 companies have announced their final withdrawal from the market, while 211 firms were listed in the beginning of 2015.
The delisting trend appeared due to weak revenues as compared to the increase of enlisting fees which reach about KWD 50,000 annually, said technical analyst Ibrahim Al-Filkawy.
The Capital Markets Authority (CMA) has set a rule for companies’ capital to be not less than KWD 10 million, as well as other conditions which can be hard for some companies to meet, added the analyst.
The market value for companies which were delisted both voluntarily or compulsory has not exceeded 2.4% of total market cap, according to a study made by the CMA.
Al-Nawadi, Kuwait Packing Materials Manufacturing, Kout Food, and Strategia will be delisted as of 2 May, 17 April, 8 March, and 1 March respectively.
