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Satyendra Pathak
Doha
Qatar Petroleum (QP) on Monday announced that initial public offering (IPO) subscription for listing Qatar Aluminium Manufacturing Company (QAMCO) on Qatar Stock Exchange will start on October 30.
Addressing a press conference to provide details about the IPO, Qatar Petroleum President and CEO Saad bin Sherida al Kaabi said the forthcoming public offering will see 49 percent of QAMCO shares up for grabs, while QP will own the remaining 51 percent of the company's share.
Elaborating the structure of QAMCO, Kaabi said,"QP has authorised the transfer of its entire 50 percent stake in Qatalum to QAMCO, and will retain a 51 percent shareholding and offer 49 percent of QAMCO's issued shares in this IPO."
"QP is the sole founder of QAMCO, which has a proposed issued share capital of QR5.58 billion, or approximately $1.5 billion, divided into 558,011,999 ordinary shares, and one share with nominal value of QR10 each. Qatar Petroleum is offering 273,425,880 ordinary shares of QAMCO to public."
Kaabi said the subscription period will be open for two weeks, starting on October 30 and closing at the end of business day on November 12.
Shares are expected to be traded on the Qatar Stock Exchange by mid-December after obtaining all remaining regulatory approvals, he said.
"The offer shares will be available at QR10.1, which includes the nominal value per share of QR10, plus offering and listing costs of QR0.1 per share," he said. The IPO subscription will be available for Qatari citizens only, he said, adding that 5 percent offer shares will be dedicated to the civil and military pension funds.
Non-Qatari and international investors can buy shares in the secondary market post listing, Kaabi said while noting that the shares would be Sharia-compliant."The QAMCO IPO is a new milestone in the history of initial public offerings in Qatar, which will give Qatari citizens an opportunity to share the rewarding returns generated by Qatar Aluminium through an IPO," he added.
Citing the IPO as a unique investment opportunity for Qatari citizens in state companies, he said,"It will also be instrumental in cultivating long-term investing culture among Qatari nationals."
The listing will further diversify the investment opportunities on the Qatar Exchange, he said, adding that QAMCO's value lies in Qatalum's strength and its competitive advantage in the global market.
The minimum subscription in the IPO will be 50 shares and the maximum is set at 11.16 million shares for individual investors, he said. Any request for subscription from 50 to 750 shares will be allotted in full, while subscriptions for over 750 shares will be allotted in multiples of 50 shares provided that the number of remaining offer shares available for subscription is sufficient to satisfy all such subscriptions in full and equally.
While Qatar National Bank (QNB) has been mandated as the lead receiving bank, Kaabi said, the distribution and collection of all IPO application forms can also be processed through nine other receiving banks like Qatar International Islamic Bank (QIIB), Masraf Al Rayan, Commercial Bank, Al Ahli Bank, Doha Bank, Qatar Islamic Bank (QIB), Barwa Bank, Arab Bank and Al Khalij Commercial Bank.
