Meysan advises on successful offering and listing of the shares of Action Energy Company (AEC) on Kuwait Stock Exchange

Kuwait – Meysan Lawyers and Legal Consultants in Kuwait advised on the offering and listing of the shares of Action Energy Company on Kuwait Stock Exchange – Premier Market with the joint global coordinators and joint bookrunners, National Investments Company, EFG-Hermes UAE Limited and Arqaam Capital Limited. Action Energy Company, a leading Kuwaiti onshore drilling and oilfield services provider has successfully completed its private placement of a total of 260,000,000 ordinary shares to qualified investors, representing 45.9% of the company’s total issued share capital after completion of its issuance of the first preferred shares and its conversion to ordinary shares in the name of the investors in one of the most complex capital transactions in the last years. Trading of Action’s shares commenced in Boursa Kuwait under the ticker “ALFTAQA” and ISIN “KW0EQ0610166”. The celebratory bell-ring ceremony took place at the Kuwait Stock Exchange, announcing the official listing and commencement of trading of Action’s shares on Boursa Kuwait, and marking a historic moment for Action and the Kuwait Capital Market landscape in general. The transaction marks the first primary and secondary private offering of shares in a single offering after completion of the conversion of the first ever preferred shares into ordinary shares in the company since the introduction of the preferred shares under the Capital Markets Authority’s (CMA) regulations in 2015. The transaction implicated multiple legal challenges including the structuring of the offering to attract investors while ensuring strict adherence to all regulatory requirements, and the timely execution of the transaction based on the market conditions. Meysan assisted throughout the entire process and work streams by conducting all necessary diligence on the offering and listing requirements. Meysan’s role also encompassed structuring the offering including the book building and subscription process, and the pricing and allocation mechanisms in compliance with regulatory frameworks and securing approvals from CMA and Boursa Kuwait. Meysan worked closely with National Investments Company K.S.C.P. (NIC) acting as listing advisor and subscription agent and with EFG-Hermes UAE Limited as the Joint Global Coordinators and Bookrunners, to ensure smooth and timely execution of the transaction. Partner at Meysan, Tarek Yehya said “We congratulate Action for achieving this milestone. We are proud at Meysan to be working closely with leading family businesses in Kuwait and helping them to achieve their crucial objectives. We understand the challenges that families face in maintaining their legacy and we support them in implementing their strategy. We are confident that this successful listing, will further encourage other family businesses to access the benefits of the capital markets.”

The transaction team was led by Partner Tarek Yehya and Counsel Lama Abou Ali with the support of partner, Dr. Abdulwahab Al Sadeq and Associate Sara Awaly.