The initial public offering (IPO) of Baladna, the proposed holding company of dairy farm major, has reportedly oversubscribed, indicating the overwhelming response from local retail and corporate investors.
The offer – which comprised 1.43bn new shares at QR1.01 a piece (including listing fees of QR0.01), representing 75% of the share capital – ran from October 27 until close of business yesterday.
The 75% IPO includes 52% or 988.52mn shares to individual and corporate investors and 23% or 437.23mn shares to “strategic” investors such as General Retirement and Social Insurance Authority (10%), Hassad Food (5%), Al Meera Consumer Goods (4%), and Mwani Qatar and Widam Food (2% each).
The officials of Baladna, which is yet to be incorporated, confirmed high demand from investors, which resulted in oversubscription.
“In light of this demand, priority will be given during the allocation process to retail investors, followed by corporate investors, in line with the allocation strategy outlined in the IPO prospectus,” the company said.
However, the company did not specify the extent of oversubscription to IPO through which it was planning to raise as much as QR1.43bn.
It is proposed that allotment of offer shares and refunds of excess application amounts, if any, will be undertaken by November 21.
“We are very proud that so many investors have shown us their confidence in the market and our compelling growth story. Those who have applied to invest in Baladna as part-owners of Qatar’s fast-expanding fresh dairy and beverage industry have strengthened all of us by bringing nature and technology together to help nourish a prosperous Qatar and a healthy economy for years to come,” said Dr Kamel Abdallah, chief executive of Baladna.
The IPO provided eligible investors the opportunity to invest in Baladna Food Industries, or BFI, Qatar’s beacon of self-sufficiency in the dairy sector.
The incorporation of Baladna will be completed following the meeting of the Constitutive General Assembly (CGA) and issuance of the commercial registration by the Ministry of Commerce and Industry.
The CGA meeting will take place on November 26 and shares are expected to be listed on the Qatar Stock Exchange by mid-December.
