DOHA: Bankers estimate that the number of those applying for subscription to the primary issue of the state-backed Mesaieed Petrochemical Holding Company (MPHC) may reach 200,000 at the close of the subscription process today.
According to community sources, this would be a good turnout considering that there has been confusion over whether it was permissible in Islam (halal) or forbidden (haram) to apply for subscription to the initial public offering (IPO). The Peninsula’s sister Arabic daily Al Sharq reported quoting banking industry sources that there are an estimated 350,000 Qataris and out of them some 200,000 were expected to apply for the IPO.
The daily also reported that there has been confusion in the community as some said it was halal to apply for the subscription to the MPHC’s IPO and own its shares, while others said it was not. Bankers are, meanwhile, gearing up to cope with a huge turnout of Qataris since subscription to the IPO closes by 1pm today. “We have been witnessing huge turnouts of IPO applicants for the past few days,” a banking industry source said.
There was hardly any rush in the days immediately after subscription to the IPO opened on December 31, 2013. However, according to bankers, as the closing date approached nearer, the rush increased. Nearly all the 12 participating banks have set up dedicated counters to serve IPO applicants—the issue is open for subscription to Qatari individuals and a few select institutions only.
Many banks were offering up to 100 percent financing to Qataris to apply for subscription to the issue. Qatar Petroleum, which set up MPHC, said in a statement yesterday that many Qataris have recognized the attractiveness of the initiative of the MPHC are rewarding shareholder loyalty program that gives investors the conditional right to receive incentive shares over five to years.
The statement said the allotment of shares on offer via the primary issue is to be finalized by January 30, and refunds are to be made to the applicants for the unsubscribed portion of shares.
In February, the MPHC will be listed on Qatari bourse (Qatar Exchange), said the QP statement.
The Peninsula
