Article 33 of Capital Markets Authority Law

The Authority shall grant a stock exchange licence to a joint-stock company that replaces the Kuwait Stock Exchange. The capital of this company shall be determined by a resolution of the Board of Commissioners, and its activity shall be limited to operating a securities exchange. The Authority shall be charged with establishing this company, provided that its shares are allocated as follows: 1 - A percentage of not less than six percent 6% and not more than twenty-four percent 24 shall be allocated to public entities entitled to own shares, and the percentage not subscribed for shall pass to the winning investor. Law Index 1349 Home Page Capital Markets Authority Law Law No. 7 of 2010 concerning the Establishment of the Capital Markets Authority and the Regulation of Securities Activity 2 - A percentage of not less than twenty-six percent 26% and not exceeding forty-four percent 44% shall be allocated for subscription by companies registered on the Kuwait Stock Exchange together with a global stock exchange operator, or by a global operator alone. The Authority shall establish the conditions and controls that must be satisfied by bidders and the bidding and, the auction shall be awarded to whoever offers the highest price per share above its nominal value plus incorporation expenses—if any. - A percentage of fifty percent 50% shall be allocated for public subscription by all citizens. - The Commission of Commissioners charged with establishing the company shall determine its capital and distribute all shares allocated for public subscription equally among all Kuwaitis whose names are registered with the Public Authority for Civil Information on the subscription day, provided that the value of these subscriptions is paid by citizens to the Authority in accordance with the procedures and in the manner determined by the Authority, without any interest, fees or any increase above the share price on the subscription date, no later than the day at the end of which sixty days expire, calculated from the beginning of the month following the month in which the Authority invited citizens, through Kuwaiti print, audio and visual media, to pay the value of the subscriptions due from them. The Authority shall include in the subscription prospectus a clause permitting citizens to request an increase in their allocation from the shares whose value has not been paid to the Authority, so as to ensure full coverage of the fifty percent 50% allocated to citizens. The Authority shall determine the mechanism and procedures for allocating the amount of the increase and distributing it among these citizens, and the manner, procedures and deadlines for their payment of its value to the Authority. The Authority may approve the licensing of other stock exchanges, whose capital, activity, conditions governing their operations and management, and everything relating to them shall be determined by a resolution of the Board of Commissioners.