By Santhosh V Perumal

 

Qatar Insurance Company (QIC) is planning to list its subsidiary QIC International on Qatar Stock Exchange as part of broader measures to make the company more visible in the corporate space.

Moreover, QIC, which itself is a listed company, is seeking to enhance the foreign ownership limit (FOL) to a maximum of 49% from the present 25%, in line with a recent Emiri Decree that allowed higher such limits in listed companies.

These were disclosed after the insurance company’s board met to discuss the financials for the third quarter ended September 2014.

QIC International is registered under the Qatar Financial Centre Regulatory Authority and it will be the first QFC entity to seek listing at the local bourse, which now has a total of 43 listed companies.

Sources in the QFC said they would not comment on individual entities but held that increased investment universe was beneficial for the underlying company as well as the investors.

With the listing of QIC International; the bourse will have a total of six listed insurers: others being the parent Qatar Insurance Company, Doha Insurance, Al Khaleej Takaful, Qatar General and Reinsurance and Qatar Islamic Insurance. Among the seven sectors, the insurance has the least volume.

The last time QSE witnessed the listing was of Mesaieed Petrochemical Holding Company — a holding entity of Q-Chem I, Q-Chem II and Qatar Vinyl Company — through an initial public offering, which was over-subscribed five times.

However, it is not known what route QIC International will take in so far as listing on the QSE.

Global credit rating agency Standard and Poor’s has given QIC International a long-term insurer financial strength rating of “A” which corresponds to a stable outlook. The board also accepting the offer submitted by the General Retirement and Social Insurance Authority to fully acquire the issuance of the convertible bond, which was approved for issuance by the board in the meeting held in July this year, according to the agreed upon terms and conditions.

The insurance company has decided to convene ordinary and extraordinary general assembly meeting next month to seek shareholders’ approval regarding the listing of subsidiary and increasing the foreign ownership limit.

Many listed companies, it is learnt, that are in the process of easing the FOL in view of the MSCI upgrade. It is expected that as much as QR2bn to QR5bn foreign funds will flow into the local bourse.

Deutsche Bank had earlier said that the QSE could potentially outweigh the UAE bourse in the MSCI emerging market (EM) index, following the government’s decision to hike FOL in the listed companies.

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