Qatar’s first initial public offer (IPO) in three years will open for subscription from today to garner as much as QR3.23bn, an offer that has been eagerly awaited by local retail investors.
Mesaieed Petrochemical Holding Company (MPHC) - a wholly-owned subsidiary of Qatar Petroleum (QP) and an umbrella entity for Q-Chem I, Q-Chem II and Qatar Vinyl Company (QVC) - is offering 323.19mn ordinary shares (26% stake) at QR10.2 a piece (including QR0.2 listing fees).
The IPO is primarily reserved for Qatari private individuals with minimum subscription at 50 shares and a maximum of 1mn.
Although Qatari private institutions or corporations are excluded, Qatar Foundation and the General Retirement and Social Insurance Authority have been allowed to partake in the subscription.
MPHC has been selected to initiate an IPO, given its reliable financial track record of its underlying portfolio companies and the potential for attractive dividend success in the petrochemical industry.
The interests in Q-Chem I, Q-Chem II and QVC now held by MHPC generated aggregate revenue of QR4.3bn and net profit of QR1.6bn in 2012.
The maiden offer, which is part of QP’s 10-year investment and savings programme, is scheduled to close for subscription on January 21. After the IPO, QP’s holding will come down to 74%.
MPHC will be eventually listed on the Qatar Exchange by February 2014.
QP is also offering “incentive” shares to Qatari nationals, who subscribes to the IPO, after five and 10 years (2018 and 2023 respectively), provided they retain at least 50% of their shares purchased in the offering at all times.
For each share purchase in the IPO, each qualifying investors will receive one additional incentive shares, free of charge over the period.
The government will distribute 750 shares of MPHC as a gift to each disadvantaged citizen, including those receiving social security benefits and people with special needs.
The lead receiving banks for the IPO are QNB (all branches), Ahlibank Qatar, al khaliji, Arab Bank, Barwa Bank, Commercial Bank, Doha Bank, International Islamic, Mashreq Bank, Masraf Al Rayan, International Bank of Qatar and Qatar Islamic Bank (selected branches).