Kuwaiti conglomerate Alghanim Industries weighs $1bn IPO

Alghanim Industries Ltd., one of the largest privately-owned firms in Kuwait, is seeking to raise about $1bn from a potential initial public offering, people familiar with the matter said.

The family-run conglomerate, which traces its roots back more than 100 years, is working with banks including Credit Suisse Group on the possible listing, the people said. Alghanim is 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.

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.

A representative for Alghanim declined to comment further. A spokesperson for Credit Suisse also declined to comment.

Alghanim employs more than 14,000 and operates in over 30 businesses across sectors including automobiles, retail, construction materials and financial services, according to its website. It 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.

The Middle East has been a bright spot for IPOs this year, with equity markets in the region boosted by surging in oil prices. Boursa Kuwait expects more firms to list soon, followed by government-controlled companies, chief executive officer Mohammad Saud Al-Osaimi said earlier in the year.