Market Watch
Corporate Finance Overview
Markaz assists corporate clients achieve optimal financing structures and help them obtain funding from capital markets at best possible terms, by facilitating successful equity or debt issuances. Over the past 10 years, Markaz structured and raised over KD 210 million through debt instruments and undertook equity transactions which totaled to over KD 177 million.

Our advisory services encompass a wide range of activities designed to help clients execute their corporate restructuring plans and implement their strategies. These strategies may include expansions (including mergers and acquisitions), contractions (such as selling or spinning off companies or divisions), and corporate control. Our services include valuation, due diligence, execution of merger plans, placement, and financing transactions.

Advisory Services:
Acquisition, disposition, merger
Financial restructuring, credit rating enhancement
Direct investment advisory and Establishment of companies
Company and project evaluation including valuation and due diligence
Listing of companies on stock exchanges

Corporate Financing Solutions:
Debt issues including bonds and Shari’ah compliant Sukuk
Equity issues such as rights offering, private placements, and IPO's
Structured finance and product development including equity derivatives.

Markaz has placed over US $ 200 million in the Kuwaiti market over the last 12 months and has managed over US $ 1.7 billion of equity and debt issues since its restructuring in 1997. To date Markaz has executed about 50 mandates ranging from equity raising, debt issuing, financial restructuring and fund management

Direct Investments Opportunities:
Real estate investments; income producing and development
Investments in energy related companies
Institutional quality private equity funds

Track Record
Our team has operated across all market cycles; and we have committed our financial resources and experience to successfully deliver on our mandates during bear markets as well as during bull markets.

Key Transactions
  


Banking Sector:
Bank of Bahrain and Kuwait B.S.C

Listing on Kuwait Stocks Exchange

      After the modification of KSE listing rules, Bank of Bahrain and Kuwait B.S.C (BBK) has mandated Markaz to act as its Listing Advisor in 2006.

      After providing all the requirement to KSE, Markaz acquired the listing approval of BBK shares in record time.

      Markaz started creating market awareness of the bank before listing its shares on KSE.

      All the potential investors were invited to a conference that was successfully held before the listing day.

      The BBK shares were successfully listed on KSE on the 11th of September 2006.

 


Industrial Sector:
National Industries Company for Building Materials K.S.C.C

Equity Placements

      In 2006, National Industries Company for Building Materials K.S.C.C (NICBM) decided to raise its capital by 50% through a right issue.

      Markaz was mandated to lead manage the issue of 105.7 million shares.

      Markaz has publish brochure of the issue to increase the awareness of NICBM’s shareholders of the company’s previous performance and future plans.

      The issue was fully subscribed efficiently in a record time.

 


Oil & Gas Sector:
Independent Petroleum Group S.A.K

Advisory Services

      Markaz assisted Independent Petroleum Group S.A.K (IPG) in the acquisition of Uniterminal; which are gas and oil terminals and distribution facilities in Lebanon.

      Markaz found the opportunity, and assisted IPG in negotiating the acquisition.

Equity Placements

      In 1998, Markaz was mandated to underwrite and distribute a rights’ issue for 22.5 million shares 

      Markaz won the bid against several other institutions and underwrote the issue with a firm commitment to purchase any unsold share. 

      Prior to the Issue, Markaz carried out a thorough analysis of IPG, distributed its findings to portfolio managers, thus created awareness and demand for the shares in the market.

      5 months after the issue, Markaz remained fully committed to the stability of the share price of IPG, as evidenced by the market. 

      In 2005 Markaz again successfully placed a rights’ issue consisting of 43 million shares on fully underwritten basis.

 


Holding Companies:
National Industries Group S.A.K (Holding)

Advisory Services

Markaz assisted National Industrial Group S.A.K (NIGH) to carry out the following:

      Transformation from manufacturing company into a Holding company operating as a private equity structure.

      Spinning off some of its subsidiaries such as Kuwait Privatization Projects Holding Company (KPPHC) and NICBM.

      Acquisition of Contracting and Marine Services Company.

Bond Issue

      In 1998, Markaz managed and placed a bond issue of KD 35 million, the largest issue in the Kuwaiti market at the time, during difficult market conditions.

      Despite the unfavourable market conditions the bond was successfully placed at par.

      Markaz provided liquidity to the bond in the secondary market.

      In 2001, Markaz was again mandated to co-manage the second bond issue for the same amount.

 


Logistics Sector:
Kuwait and Gulf Link Transport Company K.S.C.C

Advisory Services

Markaz assisted Kuwait and Gulf Link Transport Company K.S.C (KGL) to conduct the following:

      Restructure its operations to become a full fledged logistics services company.

      Partial disposition of KGL Ports International Company.

Bond Issue & Equity Placements

      In April 2003, Markaz managed a KD 6 million non-investment grade bond issue on behalf of KGL, the first of its kind in the Kuwaiti market, to assist the latter in financing expansion of operations.

      In August 2003, Markaz was mandated by the KGL to increase its capital by 25% through a Rights Issue.

      The issue was 100% oversubscribed.

      The allocation and distribution of shares was performed error free, and in record time.

 


Real Estate Sector:
Commercial Real Estate Company K.S.C.

Advisory Services

Markaz assisted Commercial Real Estate Company K.S.C (CRC) on the following:

      Formulation of the Company Strategy

      Disposition of assets through a fund structure.

      Listing of its shares on KSE

      BOT Project

      Corporate Rating

Debt Placements

      In 2005, Markaz structured and co-managed a USD 100 million Sukuk issue for CRC, which was placed across the region.

 


Services Sector:
Al Waseet International K.S.C (Closed)

Advisory Services

Markaz has advised Al Waseet International K.S.C (AWI) to carry out the following:

      Capital Restructuring: to attain the best possible outcome, Markaz has provided AWI with the optimal capital structure by reforming the diverse operations of Al Waseet Classified Ads Tabloid (AWCAT) that are located at different areas in the Middle East and North Africa (MENA) region.

      Shares Swap: to develop a share swap formula for the promoters and other strategic shareholders for consolidation of all the operations and franchises under one umbrella. 

 

 


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