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Mon 9 Jan 2017 12:21 PM

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Qatar's Investment Holding Group launches initial public offering

IHG is the first family business to be approved for listing on Qatar Stock Exchange

Qatar's Investment Holding Group launches initial public offering
(Getty Images)

Qatar-based firm Investment Holding Group has floated 60 percent of its shares in an initial public offering (IPO) on the Qatar Stock Exchange (QSE), it announced on Monday.

IHG is the first Qatari family firm to have been approved for listing on the Qatari stock market.

It also represents the first achievement in QSE’s drive to attract more family businesses to the exchange.

QSE CEO Rashid Al Mansoori told Arabian Business in an interview: “Although many of these companies are coming up to their third generation of family ownership and are thinking about how to safeguard their assets, such as by tapping the stock market, we also see some nervousness.

“Many don’t realise the benefit of going to IPO. Maybe they are a little concerned about who’s in control of the company [once it goes public] – the potential loss of control – as well as disclosure requirements, regulatory issues and so on.”

Investment Holding Group said in a statement that it was listing 60 percent of its total shares on the stock exchange in a two-week period from January 8-22.

The listing represents share capital of QR830 million ($228 million) divided into 49,800,000 ordinary shares. These will be available for purchase by Qatari citizens and Qatari companies or institutions under 100 percent Qatari ownership or listed on the QSE.

The nominal value of a share is QR10 ($2.7), to be fully paid upon subscription, plus 1 percent of the nominal value of each share for the offering, listing costs and other fees, to be paid as a lump sum.

Any individual or institutional investor correctly following the application process is entitled to a minimum individual allocation of 500 offer shares, as stipulated by the Qatar Financial Market Authority. Additional batches of 100 shares can be purchased over this minimum level.

Paid amounts for unallocated shares can be redeemed no later than two weeks from the closing date and without any interests or profits paid, the statement on QSE said.

As of June 30 2016, IHG’s net profit was QR69.53 million ($19 million) and it had total revenues of QR236.81 million ($65 million).

Its total assets were valued at QR971.69 million (266.9 million), according to its latest financial results.

IHG is QSE’s first IPO in two years, since the listing of Mesaieed Petrochemical Holding in 2014.

Gulf Times reported that QSE had opened on Sunday with a substantial decline in trade turnover and volumes; the index gained a marginal nine points as global oil prices last week remained flat.