Qatalum (Qatar Aluminum) has received the green signal from the Qatar Financial Market Authority for its initial public offering (IPO), which is expected to bring depth and diversity for the market and also help the country’s oil major Qatar Petroleum (QP), the owner, to focus more on core hydrocarbons.
The move follows the directives of His Highness the Amir, Sheikh Tamim bin Hamad al-Thani to offer Qatari nationals shares in state-sponsored companies that ensures safe investment environment and lucrative returns.
The country's bellwether QP had said in May that it will list 49% of its shares in the aluminium smelter plant Qatalum in a public offering during the last quarter of this year.
“It is very positive for the market. With aluminium prices remaining high, it is a good investment opportunity for the investors,” Talal Samhouri, head of asset management, Amwal, had said during QP’s announcement.
In its 2013 strategy, QP had said it was contemplating a series of IPOs for its subsidiaries over the next 10 years, after launching the maiden offer of Mesaieed Petrochemicals Holding Company.
The series of IPOs come under QP’s 10-year investment and savings programme that seeks to offer Qatari citizens the opportunity to share in the country’s current and future wealth.
The Supreme Council of Economic Affairs had made a presentation regarding offering shares worth QR50bn of several state-owned companies to Qataris over a period of 10 years.
The last time the country witnessed a maiden offer from the QP’s stable was MPHC, a holding entity for Q Chem, Q Chem I and Qatar Vinyl Company.
Qatalum posted total revenue of QR5.1bn and a net profit of QR660mn in 2017.
The company produces about 645,000 tonnes per year of high quality aluminium for its customers in Asia, Europe and the US. Its facilities include a carbon plant, port and storage facilities and as well as a gas-fired power plant.
Qatalum’s cast house products are value-added extrusion ingots and foundry alloys that meets the stringent quality standards of its global customer base. Used in a variety of industries including the automotive, construction, engineering and in the manufacturing of consumer goods, Qatalum’s aluminium reaches the entire global community. Qatalum uses the HAL275 system, an environmentally friendly, energy-efficient technology.
At present, the Qatar Stock Exchange has 45 listed companies with 13 in the banks and financial services sector, nine each in the industrials and the consumer goods, five in the insurance, four in the real estate, three in the transport and two in the telecom sector.
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