Dubai-listed GFH rethinks London, Kuwait listings

Bahrain's Gulf Finance House (GFH), which is listed on Dubai bourse also, will study whether to continue its stock market listings in London and Kuwait, the company said on Monday, after investors raised concerns at the firm's annual shareholders’ meeting.

GFH is listed in four places, a potentially costly arrangement: Dubai Financial Market, where its shares are often the market's most heavily traded, Bahrain, Kuwait, and London in the form of global depository receipts.

The news sent its stocks plunging on the Dubai bourse on Monday.

GFH was the biggest loser on the Dubai bourse on Monday, plunging 7.7 per cent to Dh0.227. GFH counter was the busiest yesterday, recording 1,320 trades with 311.2 million shares exchanging hands worth Dh72.8 million. Its Kuwaiti listing closed down 2.6 per cent yesterday.

It is also heavily traded in Kuwait, where it is a favourite of retail investors who view it as a relatively liquid stock offering a greater chance of generating profitable trades than larger blue-chip names.

In a statement, GFH did not give details of what its review would involve or say when it might be completed. However Chief Executive Hisham Alrayes told Al Arabiya TV shareholders had raised questions about the company's treatment by Kuwait's market regulator.

"We have the same disclosures in Kuwait and Dubai but there have always been some reservations from the regulatory authorities in Kuwait on the level of our disclosures," he told the television station.

"Shareholders requested to look into the issue of (whether it is) ... feasible to stay in the Kuwait market. I think the board will look into this issue, but just to be clear there is no direct intention to delist from Kuwait."

GFH lost an appeal in June against a decision by the Gulf state's Capital Market Authority to monitor its Kuwaiti listing after it was traded in high volumes ahead of a company disclosure in 2013 about merger talks involving a subsidiary, which GFH insisted were unrelated events.

The firm, which was crippled by the global financial crisis and required several debt restructurings, swung to a profit of $11 million for 2014 from a loss of $18 million the year before.

It also said it would change its name to GFH Financial Group.

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