Boursa Kuwait is a private entity that was established in April 2014 with the goal to take over and manage the Kuwait stock market and progressively transition its operations while delivering on three main initiatives, which are transparency, efficiency and accessibility.
In a bid to increase liquidity and improve the issuer's base, it announced in December 2017 that it will consist of a Premier Market, a Main Market and an Auction Market. It is conducting tests with relevant stakeholders before it officially launches the plan.
The Primer Market will form an elite category, which will be occupied by high calibre companies with high liquidity as well as medium to large market capitalization requirements. Companies in this segment are subject to annual reviews to validate its performance throughout the year so that it can remain in the segment. They will also be required to hold quarterly analyst conferences and to provide information in both Arabic and English.
The Main Market companies will need to maintain a minimum level of liquidity and they will also be subject to annual reviews.
The Auction Market will include companies with low liquidity regardless of its market capitalisation. Trading in the Auction Market is expected to follow an auction trading mechanism with no continuous trading.