Kuwait city: Kuwait Stock Exchange (Boursa Kuwait) announced on Saturday that the Emerging Companies Market (ECM) will launch and begin accepting listing applications starting Sunday, following the completion of all technical and technological requirements in coordination with capital market stakeholders and participants.
According to Kuwait News Agency, the establishment of the ECM is the result of collaborative efforts led by the Capital Markets Authority (CMA), which approved the market's regulatory framework and updated listing rules to enhance corporate commitment to disclosure and governance requirements, thereby improving transparency and liquidity.
Boursa Kuwait stated that the regulatory framework aims to empower small and medium-sized enterprises (SMEs) by providing them with flexible financing channels and boosting investor confidence through a balanced regulatory environment aligned with international best practices. This initiative included a series of technical upgrades and operational tests, with automated systems and trading platforms developed in collaboration with market participants such as brokerage firms and service providers.
The ECM is the product of institutional coordination between CMA and Boursa Kuwait, reflecting the commitment of the entire capital market ecosystem to providing a safe and efficient listing environment that supports the growth of national companies. Noura Al-Abdulkareem, Boursa Kuwait's Head of Markets, emphasized that the operational readiness of the ECM marks a pivotal milestone in their strategy to expand the base of issuers and investors while upgrading the market infrastructure to international standards.
She further highlighted the effective institutional collaboration with CMA, which provides the necessary regulatory leadership and legislative framework. This collaboration is aimed at empowering national companies to grow and support the national economy through a strong and sustainable private sector. Al-Abdulkareem also acknowledged the ongoing support from CMA and the efforts of all partners in the market system who contributed to the success of the extensive technical tests.
Listing on the ECM offers strategic opportunities for SMEs by granting them access to diverse funding sources at a lower cost compared to traditional financing. It enables companies to achieve higher valuations, attain greater business clarity, and improve share tradability within a regulated market, thereby enhancing credibility and strengthening investor and financial institution confidence.
The market features flexible listing requirements tailored to SMEs, including a minimum fair value of KD 750,000 (approximately USD 2.2 million), a minimum free float of 20% of the company's capital, and at least 20 shareholders each holding shares worth no less than KD 5,000 (about USD 15,200). Additionally, the company must continue conducting its core business activities, with most revenue generated from those activities, and submit audited financial statements for the two full fiscal years preceding the listing application date.
Companies may also list shares of capital increase or shares held by existing shareholders, subject to the approved listing requirements.