Damaan Insurance Company (Beema) on day made the trading debut on the Qatar Stock Exchange (QSE) with its stocks gaining as much as 33% intraday in an otherwise bearish bourse.
With the listing of Beema, the number of listed companies on the QSE’s main market will increase to 49.
Beema chairman Khalifa Abdulla Turki al-Subaey rang the customary bell to mark its entry into the trading ring of the QSE, in the presence of the bourse's acting chief executive officer Abdul Aziz Nasser al-Emadi as well as several representatives from the company and Qatar’s financial market.
Beema, whose shares were listed through the direct listing, a common mechanism in all the regional markets that allows companies to be listed without an IPO, finally closed more than 2% higher at the close.
“As stock exchange, we are happy to see one of the good companies in a very important sector to get listed,” al-Emadi told media on the sidelines of the listing ceremony.
Its shares were listed in the insurance sector with the ticker 'BEMA'. The company's share price was floated on the first trading day.
The stock’s opening price was QR5.006, and the last transaction price was QR4.295 riyals. The highest price reached was QR5.6 during the trading session and the lowest price was QR4.250. Starting from the second day of trading, the stock price will be allowed to fluctuate by 10% up and down, as is the case for other listed companies .
A total of 4.67mn shares valued at QR25.33mn changed hands across 749 transactions. The company's shares comprised 83% of the total volumes in the insurance sector.
"The listing of this company will increase the depth of the market and unlock opportunities to expand our investor base and access to capital, while providing investors with the opportunity to invest in leading Qatari companies,” said al-Emadi.
Beema was established on October 18, 2009 with an authorised capital of QR200mn, which is 100% fully paid. The company’s main objective is to carry out insurance and reinsurance business of all kinds and invest capital and assets in the manner approved by the board of directors, in accordance with the provisions and rules of Islamic Shariah.
Post listing, Qatar Islamic Bank and Qatar Insurance will have 18.75% stake each (against 25% before listing), followed by Masraf Al Rayan and Barwa 15% (20%) and QInvest 7.5% (10%). The public will have 25% holding in the company.
Beema is the first company to get listed this year and so there is excitement among investors, according to G Hari Krishnan, its chief operating officer.
“We believe in strong bottom line, which drives the top line. We make sure there is consistency in bottom line,” he said, expecting marginal growth in 2023.
Post FIFA, opportunities are coming up in real estate and construction due to the boom in tourism, he said, adding the ambitious expansion plans for the hydrocarbon sector also augur well for the insurance sector.
On the proposed health insurance, he said “the platform is ready” but it is awaiting further finer details from the government.
"The timing of the implementation of mandatory medical insurance for non-citizens is very important for the Qatari insurance industry," Akber Khan, senior director, Al Rayyan Investment, told Gulf Times.
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