Meeza QSTP, a leading provider of end-to-end IT services in Qatar, is aiming to garner as much as QR847mn to QR912mn through its initial public offering (IPO), whose process is slated to begin on January 15.
In a first in the country's capital market, the IPO is being undertaken by book-building route through which Meeza is offering 324.49mn shares, amounting to 50% of the total issued share capital of the company.
Meeza has obtained the Qatar Financial Market Authority’s approval to commence the book-building process, which will be used for the first time in Qatar’s financial markets, to determine the offering price of the company’s shares in preparation for proceeding with offering 50% of its capital to institutional and individual investors within the next few weeks, said a communique from the Qatar Stock Exchange (QSE).
The book-building mechanism is used in many global and regional markets to determine the share offering price by relying on qualified investors who have sufficient experience and knowledge and the necessary mechanisms for fair pricing of the security, a QSE spokesman said.
Meeza’s shares are expected to start trading from the mid of March. After that, the total number of listed companied would become 50. At present, there are 48 constituents and one more (Beema) is expected to start trading from January 16.
Meeza’s offer shares are currently owned by the founders Qatar Foundation for Education, Science and Community Development, which holds 259.59mn shares and Ooredoo 64.09mn.
The offer shares will be sold by the founders. The total offering size is expected to be between QR846.92mn and QR911.82mn.
During the book-building subscription period, which starts on January 15, the company will be offering a minimum of 30% of the total offering, and maximum of 50% of the total offering to qualified investors, with the final percentage offered and final offer share price to be determined based on qualified investor orders within the price range.
The price range of Meeza's shares has been set between QR2.61 and QR2.81 per share with a nominal value of QR1; implying an issuance premium ranging from QR1.6 to QR1.8. Besides, the offer will have IPO fees of QR0.01 per share.
The final price per offer share will be determined after the completion of the book building process.
After the completion of the book building subscription period, the remaining 50%-70% of the total offering will be made available to the general public during the individuals and corporates subscription period, which will begin on February 12, in accordance with the procedures and tranches applied with the allotment strategy specified in the offering prospectus.
The company has appointed QNB as the lead receiving bank for the IPO subscription and QInvest as the listing advisor and offering manager.
Related Story