Shaimaa Hefzy

Kuwait-based general trading company Truly raised its initial public offering (IPO) stake on the Kuwait Stock Exchange to 35% from 30% due to strong demand for the offering, with an expected offering size of 59.5 million Kuwaiti dinars ($194 million), according to IFR data.

Quick background

(According to a statement issued by Trulli last week)

The company intended to offer up to 82.5 million shares, with the offering limited to qualified investors, including naturally occurring professional investors and qualified professional investors.

A professional investor, by definition, includes licensed individuals and institutions, government entities, or companies with paid-up capital of at least one million Kuwaiti dinars or its equivalent. A qualified professional investor, however, is one who meets specific criteria related to the volume of their securities transactions.

The order book period and price ticking process were set for February 9-12, to be followed by the subscription process in the period of February 15-19.

What's new?

(According to IFR service)

Trulli increased the number of shares offered to approximately 96.3 million shares, representing about 35% of its shares.

- The price range was set between 0.60 and 0.618 Kuwaiti dinars.

- The share was priced at the maximum limit in the offering, making the expected subscription size around 59.5 million dinars.

- The subscription received orders totaling approximately $2.9 billion, representing an oversubscription of about 15 times.

- The expected market value of the company at the offering price is approximately 170 million Kuwaiti dinars.

- The stock is expected to begin trading on the stock exchange on March 2nd.

Company overview

(According to its statement)

- It was established in 2010 and operates mainly in Kuwait through the "Trolley" and "Baqala" brands.

- It operates in Kuwait, and expanded into Saudi Arabia in 2022 through "Trolley" and opened its first store there in 2023.

Trolley has 204 stores, including 134 in Kuwait and 53 in Saudi Arabia. It also has 17 grocery stores in Kuwait.

It holds a 14% market share in the small-scale retail sector in Kuwait, while its share is approximately 3% of the total consumer goods market.

The company plans to launch new products and has plans to expand in Saudi Arabia by opening new stores.

(Prepared by: Shaimaa Hefzy, for contact: zawya.arabic@lseg.com)

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