Baladna, the holding entity of Qatar's dairy major, Wednesday made its debut on the Qatar Stock Exchange (QSE) with its equities accounting for more than 60% of total trade volume.
Baladna, listed under the consumer goods and services sector, thus became the 47th constituent on the bourse, which is seeking to be the regional hub for capital markets.
The listing ceremony was held at the QSE headquarters in the presence of investors and members of the QSE and members of Baladna’s board of directors. The new company's entry into the trading ring was marked by a ceremonial ringing of the bell in the presence of QSE chief executive Rashid bin Ali al-Mansoori.
Baladna was listed with the code “BLDN”. The opening price on the first day of trading was QR1.02, the last traded price was QR1, while the highest price was QR1.07 and the lowest price was QR0.99.
The bourse saw as many as 67.34mn shares valued at QR67.7mn change hands across 5,528 transactions.
From Thursday, the price fluctuation for Baladna will be allowed by 10%, up and down, as the case for all other listed companies.
Baladna’s QR1.43bn initial public offering (IPO), which offered 75% stake to public, was successful and it reported oversubscription.
"We are very satisfied. The demand is much higher than the offer," a board member of Baladna said.
Of the 75% offer, as much as 52% was offered to local retail and corporate houses and 23% to the existing institutional stakeholders such as the Qatar General Retirement Authority, Al Meera, Mwani Qatar and Hassad Food.
Baladna subscribers’ data have been available at the brokerage firms since December 8, to allow investors to submit their buy/sell orders directly to the brokers.
Baladna was established on December 2, 2019 with an authorised capital of QR1.9bn, which is 100% paid in full. The company’s primary objective is to manage, supervise and set the business strategy of Baladna Food Industries, the beacon of Qatar's self-sufficiency in the dairy sector.
Market experts are of the view that the dairy sector has high growth potential and the government's direct and indirect support would provide cushion for the new entrant on the QSE.
"The earnings graph looks positive" (in the short-to-medium term), one of them said.
On the basis of developments in the fiscal period ended June 30, 2019, the founders and senior management currently expect higher revenue growth to be in the range of 150%-170% for the fiscal year ending December 31, 2019 compared to the previous fiscal year, according to Baladna’s IPO prospectus.
The expected EBITDA (earnings before interest, taxes, depreciation and amortisation) margin for the fiscal year ending December 31, 2019 is to be in the range of 40%-50%, including government support, which is slated to be QR248.7mn for the full year 2019.