Kuwait currently owns 6.8% of Mercedes.
The Kuwait Investment Authority decided to sell about 20 million shares in the Mercedes-Benz Group - nearly a quarter of its stake - after the automaker's share nearly quadrupled over the past three years.
According to a statement, the General Investment Authority will own about 53 million shares after completing the share offering, which is part of an effort to diversify its portfolio.
- At a guide price of €69.27, the stake for sale would be worth around €1.4 billion ($1.5 billion).
- Mercedes shares closed up 0.6% at 71.89 euros on Tuesday in Frankfurt and traded near an all-time high.
- CEO Ola Källenius has focused the automaker on more profitable segments and scaled back its entry-level model offering, resulting in a 43% increase in the average price of a Mercedes since 2019.
- He has also spun off the luxury car company from the commercial vehicle operation, spinning off Daimler Truck Holding AG in late 2021.
- Kuwait currently owns 6.8% of Mercedes, making it it's the third largest owner, according to data compiled by Bloomberg.
- KIA Wealth Fund - the oldest and one of the largest wealth funds in the world - has been a shareholder in Mercedes for nearly 50 years.