Premier Market

The “Premier” Market is the flagship of the Boursa Kuwait markets, targeting companies with high liquidity and a medium to big market capitalization. Companies listed in that market are available in the “Premier” and “All-Share” market indices.

Companies in this segment are subject to annual reviews to assess their performance and trading activities throughout the entire year, on which basis their classification under the “Premier” Market for the following year is determined. A negative review could result in a demotion to the “Main” Market. "Premier” Market constituents are obligated to hold quarterly analyst meetings and are required to submit their disclosures in both Arabic and English. Companies classified under the Premier Market are included in the “Premier” Market Index as well as the “All-Share” Index.

To list on the “Premier” Market, companies are required to have a free float amount of KD 45 million, a seven-year operating history, and a round lot of 450 shareholders with a share value of KD 10,000 each. 

“Premier” Market Requirements

• The company must have been listed for at least two years prior to becoming eligible for the Premier Market, taking into consideration the exceptions provided in chapter seven of Boursa Kuwait’s Rulebook.
• The company must retain the required annual market capitalization greater than or equal to 78 million Kuwaiti Dinars for the total financial securities issued for two consecutive years prior to the year of assessment.
• The company must retain the required liquidity level set by Boursa Kuwait over the course of two consecutive years.
• The company must not have any disciplinary actions issued against it during the two years preceding the annual review related to the suspension of trading of its securities, the suspension or revocation of its license, or the removal of all or some of its Board members or CEO.
• The company must have seven years of continuous operations.

“Premier” Market Continuous Obligations

• The company is required to maintain an average market capitalization greater than or equal to 78 million Kuwaiti Dinars.
• The company is required to maintain an average daily traded value (ADTV) greater than or equal to the liquidity level set by Boursa Kuwait.
• The company must allocate a unit or department that is responsible for educating shareholders about the company's activities, financial performance and strategic directions; answering shareholder inquiries and questions; communicating with shareholders to exercise their rights to attend and vote in general assemblies; building links between the Board of Directors, Executive Management, current and potential investors and all interested parties; and making appropriate recommendations for the development of services provided to investors. 
• The company is required to host one quarterly analyst meeting per fiscal year within five days of the disclosure of their annual and quarterly financials. Moreover, a company must publish the transcripts of the conference/call prior to the next trading session by a maximum of 40 minutes prior to the market opening.
• The company must not have any disciplinary actions issued against it during the two years preceding the annual review related to the suspension of trading of its securities, the suspension or revocation of its license, or the removal of all or some of its Board members or CEO.
• The company is required to publish all disclosures and announcements in Arabic and English.

Breach of Obligations ("Premier" Market Requirements)

Market Capitalization

• If the constituent’s average market capitalization of one calendar year falls below 78 million Kuwaiti Dinars at the time of assessment, the listed company will be given a grace period of one year to remedy its position.
• If a company is unsuccessful in fulfilling the market capitalization obligation, it will enter the “Premier Market Constituent Breach Watch List” for three consecutive years. If the annual average market cap during that period falls below the thresholds set by Boursa Kuwait, the company will be demoted from the Market and Index in the next annual review.
• If a company fails the market capitalization obligation within the grace period, the company will be demoted to the “Main” Market. Once demoted, the company has to fulfill the eligibility requirement to rejoin the “Premier” Market.

Liquidity

• If the average daily traded value (ADTV) of one calendar year falls below the threshold set by Boursa Kuwait, the listed company will be given a grace period of one year to rectify the situation.
• If a company is unsuccessful in fulfilling the liquidity obligation, it will enter the “Premier Market Constituent Breach Watch list” for three consecutive years. If the annual average daily traded value (ADTV) during the probationary period falls below the amount set by Boursa Kuwait, the company will be demoted from the “Premier” Market and Index in the next annual review.
• If a company fails to fulfill its liquidity obligation within the grace period, the company will be demoted to the Main Market. Once demoted, the company has to fulfill the eligibility requirement to rejoin the “Premier” Market.

Premier Market Watch Lists

Boursa Kuwait maintains two distinct Watch Lists, published and maintained on Boursa Kuwait’s website.

In the “Premier Market Watch List”, market constituents are monitored continually. An annual list of market constituents meeting most of the requirements of the “Premier” Market will be published on Boursa Kuwait’s website. A listed company that is eligible for promotion to the “Premier” Market must officially accept its promotion to the “Premier” Market. Otherwise, it can opt to stay in the “Main” Market.

The “Premier Market Breach Watch List” is a list of companies in breach of their obligations. Violators have a one-year grace period to deal with the breach accordingly to fulfill their obligations. Otherwise, they will be downgraded to the “Main” Market on the next Index review.