Boursa Kuwait hosted investor relations workshops in collaboration with Instinctif Partners, a strategic reputation advisory firm based in Europe, the Middle East and Africa, at the bourse’s premises on Monday, May 27, 2024, targeting companies listed in the Kuwaiti capital market.
The workshops aimed at enriching the awareness and understanding of the latest, best-in-class standards and practices in IR, an important aspect of communicating with investors and ensuring the timely and accurate dispersion of information, which in turn helps create trust and transparency in capital markets and allows investors to fully analyze listed companies and their performance and make astute investment decisions.
The workshops were run by Matthew Smallwood, Managing Partner, Samah Ragab, Associate Partner and Duaa Kannin, Consultant at Instinctif Partners, who shared their perspectives and expertise with over 30 IR practitioners.
The workshops explored the latest trends and challenges shaping the IR industry, including the impact of artificial intelligence (AI) and Environmental, Social and Governance (ESG) metrics and reporting. The experts from Instinctif also highlighted how to build an effective IR program, utilizing efficient communications and building tools to support those activities, including developing the company website and mastering the art of presentations. The workshops also shed light on how to cultivate strong investor relationships by building successful long-term partnerships based on trust and capitalizing on data-driven insights. In addition, the workshops offered a deep dive into crafting award-winning annual reports that showcase a company’s value proposition, strategic direction, and operating landscape.
Senior Director of Marketing and Corporate Communications Mr. Naser Meshari Al-Sanousi commented on the workshops, saying, “Boursa Kuwait is dedicated to fostering a culture of sustainable excellence and enhancing the overall awareness and knowledge of the best standards, practices and trends adopted worldwide and encouraging them to be implemented across the Kuwaiti capital market. These workshops are a key initiative in our strategy to maintain a sound capital market infrastructure, one that can attract new investors and cultivate long-lasting relationships with the international investment community. I would like to thank the listed companies for their contribution to the success of this event and extend deep gratitude to Instinctif Partners for organizing this initiative and look forward to more collaborations in the future.”
Boursa Kuwait’s organization of this and other similar initiatives stems from the company’s strategy to ensure that Kuwaiti capital markets participants are informed and knowledgeable of the latest trends globally, specifically in the IR industry, which is fast becoming a vibrant industry and a key tenet of a company’s strategy, as the IR function provides an essential communications point between listed companies and their investors, whether current or prospective.
Investor relations in the Kuwaiti capital market is quickly gaining traction, as companies wishing to list on the “Premier” Market are obligated to allocate a unit or department dedicated to investor relations. That department is responsible for educating shareholders about the company’s activities, financial performance and strategic directions. It is also responsible for answering shareholder inquiries and questions, communicating with shareholders to exercise their rights to attend and vote in general assemblies as well as building links between the Board of Directors, Executive Management, current and potential investors and all interested parties.
It is worth noting that companies listed in the “Premier” Market segment accounted for 72% of the traded value in the first quarter of 2024, while “Premier” Market companies’ share of traded volume came in at 53% for the same period. Additionally, the “Premier” Market’s market capitalization during the first quarter of 2024 was over KD 36 billion, representing 83.5% of the total market capitalization of KD 43.11 billion.
This is due to the reclassification of the Kuwaiti capital market into an “Emerging Market” in some of the world’s leading index providers and the inclusion of Kuwaiti listed companies, many of whom are “Premier” Market companies, into these indexes. Additionally, companies listed in the “Premier” Market regularly participate in Boursa Kuwait’s Corporate Days, organized in collaboration with world-renowned financial institutions and showcasing the investment opportunities that reside in the Kuwaiti capital market. Putting these companies in touch with some of the world’s leading investment firms and financial institutions, the events aim to highlight these companies’ financial health and business strategies and outlooks helping investors gain an in-depth understanding of the benefits and opportunities of investing in Kuwaiti companies.
Commenting on the collaboration with Boursa Kuwait, Matthew Smallwood, Managing Partner at Instinctif Partners, said: “It was a pleasure presenting to a responsive and knowledgeable audience at Boursa Kuwait. Attendees were excited and showed great ambition to adopt the best-in-class standards and practices to become high-quality practitioners in the field of Investor Relations. A critical pillar of a company’s reputation, IR can contribute to better investor interactions and conversations, making it easier to attract new investors and retain old ones, which in turn helps deliver a valuation that companies deserve, thanks to the higher levels of transparency and trust. I would like to thank Boursa Kuwait for this opportunity and look forward to more collaborations in the future.”
Boursa Kuwait’s collaboration with Instinctif Partners highlights its commitment to enhancing its corporate communications and investor relations and ensuring their alignment with global best practices. It underscores the bourse’s proactive approach and its dedication to fostering an efficient and transparent capital market, one that can become a vital contributor to the State of Kuwait’s vision to transform into a leading cultural, financial and investment hub in the Middle East.
The initiative forms part of Boursa Kuwait’s efforts to create a lasting meaningful impact on the communities where it operates as part of its Corporate Sustainability strategy and ongoing efforts to equip all market participants with an in-depth understanding of the functioning of capital markets and various tools and techniques required to make informed investment decisions and effectively meet investors’ needs. It is also in line with Goal 4 – Quality Education – and Goal 17 – Partnership for the Goals – of the UN’s Sustainable Development Goals (SDGs).
Brief Overview of Boursa Kuwait:
The establishment of Boursa Kuwait in 2014 marked the first step in the privatization project of the Kuwait Stock Exchange, which was founded in 1977 as the first exchange in the Gulf Cooperation Council region and was reorganized in 1983 as an independent financial institution. The transitional phase began in 2016, with Boursa Kuwait officially assuming the responsibilities and operations of the Kuwait Stock Exchange, replacing it with an official license in the same year after the successful completion of the transitional phase. This ensured that Boursa Kuwait developed the infrastructure and operated according to best practices and international standards. It commenced the creation of an advanced, reliable trading platform built on efficiency, credibility, and transparency to serve all asset classes with a focus on the interests of traders and the national economy.
Boursa Kuwait has undertaken various market reforms as part of its comprehensive plans to enhance it in several stages. It succeeded in introducing innovative investment tools, enhancing transparency, and restructuring the market to increase its liquidity and competitiveness, based on its mission-focused strategy, which emphasizes developing the market to meet international standards. The company’s developmental and improvement efforts have also contributed to the reclassification of the Kuwait market as an «emerging market» among key global index providers, enhancing Kuwait’s position as a leading regional financial center.
In a pioneering step in Kuwait’s privatization field, the privatization of Boursa Kuwait was successful, conducted in two stages. The first stage was in February 2019 when a consortium of Kuwaiti investment companies and a global exchange operator won the privatization bid, acquiring a 44% stake in the company.
In December 2019, the privatization process was completed through the public offering of a 50% stake owned by the Capital Markets Authority to Kuwaiti citizens, with the offering oversubscribed by more than 850%. Boursa Kuwait is listed on the «Premier Market» under the name «Boursa».
