In line with the KPC's strategic directives that call for encouragement of the private sector in major petrochemical projects in accordance with the strategic plan of Petrochemical Industries Company (PIC) that aims at expansion of petrochemical activities, both inside and outside Kuwait, PIC set up Al - Qurain Petrochemical Industries Company (QPIC).

  • QPIC was established by the Amiri Decree No. 432/2004 dated 10.11.2004, and published in the official gazette (Kuwait Today) on 28.11.2004. Accordingly, the company has its own body corporate.
  • By the Ministerial Decree No. 34/2004, of 28.11.2004, the company's shares were placed on the market for public underwriting.
  • Underwriting was closed on 23.12.2004.
  • Distribution of shares was declared on 24.1.2005.
  • The first General Assembly was held on 2.3.2005.

Qurain Petrochemical Industries Company (QPIC) was established with share capital of Kuwaiti Dinars 110 million representing 1.1 billion shares of 100 fils each. Petrochemical Industries Company (PIC) placed 990 million shares of Al-Qurain Petrochemical Company for public subscription, from late November 2004 to December 16th in what may have been the biggest

 

subscription process in the history of Kuwait at the time.

Board of Directors, and Chairman and Managing Director of the Petrochemical Industries Company (PIC) Mr. Saad Al-Shuaib said in a press conference that these shares represent 90 percent of the company's capital of 110 million KD, while the PIC held the rest of the shares totaling KD 11 million or 10%.

"Most of the capital will be assigned for investment in EQUATE Petrochemical Company, Kuwait Aromatics Company, and Kuwait Olefins Company," said Mr. Al-Shuaib noting that the set price is 103 Fils per share.

Al-Shuaib indicated that the company had introduced three strategic measures to include the private sector in activities related to petrochemical industries. These were, firstly, the permitting of the private sector to participate in the company's projects, secondly, encouraging the private sector to develop small projects in the field of plastic and chemical industries, and thirdly, supporting private projects in the filed of petrochemicals.

Meanwhile, Consultant and Issue Manager - The National Bank of Kuwait's Investment Banking Group General Manager George Nasra expected that the new subscription will prove extremely popular among all groups of society due to the company's guaranteed success in the future.

QPIC has the following initial investment commitments :

•  6% of the share capital of Equate.

•  20% of the equity in the Aromatics and Styrene Projects.

•  6% of the equity in the Olefins II PROJECT.

QPIC is expected to generate the additional Kuwaiti Dinars required to meet its capital commitments from internal sources. No external funding is planned for in the immediate future.

Besides the capital commitments made to date, QPIC is expected to invest in other Petrochemical Projects as and when they fructify.