DOHA: The state-backed Mesaieed Petrochemical Holding Company (MPHC) that launched a low-priced initial public offering (IPO) for nationals recently, has clarified that only half the shares allotted to those below 18 years will be frozen until the time they attain majority.
The remaining 50 percent shares can be traded in by the legal guardian of the minor immediately on listing.
In a statement yesterday, the company said it was clarifying on certain key features of the IPO since a lot of ambiguity was circulating in sections of the media and on social networking forums.
About successful subscribers who are underage (below 18 years of age), the MPHC said 50 percent of the shares allotted to them will be frozen until the owner attains the legal age. “Once the minor is of legal age, he or she would be entitled to deal with those blocked shares,” said the company.
As for the remaining 50 percent shares (held by the minor), his or her legal guardian will be entitled to deal with them “on the first day of listing” of the company’s shares on the Qatari bourse.
Regarding the bonus shares that are to be given away to the successful subscribers to the IPO after five and 10 years as an incentive, those shares will also be frozen if the holder is still underage and will be released for trading only after he or she has attained the legal age.
About the shares that are to be given away free, at the rate of 750 shares each, to the beneficiaries of social security and the underprivileged (including, underage people), as part of the Emiri grant, these shares will be blocked, the company said.
The above rule will not apply to the shares allotted to the underage people who are not the beneficiary of the Emiri grant, the company said. The Peninsula
