DOHA: A multi-billion dollar investment company launched by Qatar earlier this year will offer shares to citizens, local firms and institutions via a mega initial public offering (IPO) to be floated next month.
Qatar launched three mega primary issues for its citizens and local businesses and institutions early last decade — Woqod (early 2002), Industries Qatar (May 2003) and Nakilat (January 2005) that led to a mad rush especially among ordinary Qatari investors for subscription.
All the three IPOs were floated before the Qatari bourse (then known as the Doha Securities Market) was thrown open to foreigners for trading on April 3, 2005.
The face value of the shares of the new firm (Doha Global Investment Company) will be QR10 — of which QR5 will be paid up, Qatar News Agency (QNA) reported yesterday citing a press statement from Dr Hussein Ali Al Abdullah, chairman of the bourse, Qatar Exchange (QE).
The company will have a total capital of QR45bn ($12.36bn), half of which will be in the form of paid-up capital, QNA said. Non-Qatari investors will be allowed to trade in the secondary shares of the new company, that is, after the shares are listed on Qatar Exchange, for trading.
Obviously, the listing is to take place after the subscription (to the IPO) and share allotment processes are completed.
Al Abdullah said that 50 percent of the company’s capital will be contributed by Qatar Holding, the investment arm of the country’s sovereign wealth fund, the Qatar Investment Authority (QIA).
Media reports late last February suggested that Qatar Holding will be contributing $3bn to the new company’s capital, while another $3bn will be raised through a mega primary issue (which is now set to be launched in May).
The reports, citing Al Abdullah then, said the Doha Global Investment Company will invest overseas (as its nomenclature suggests) and the company’s capital will be raised in future.
The company will guarantee a five percent dividend in the first year of its operations.
