02/01/2017 05:35 AST
Investment Holding Group (IHG), one of the leading contracting and trading firms in the Qatari construction sector, on Sunday announced that it has received approval from the Qatar Financial Markets Authority (QFMA) to list 60% of the Group's paid-up share capital through an Initial Public Offering (IP0), making it the first Qatari family business to receive approval to list its shares on the Qatar Stock Exchange (QSE) through an IPO.
The total value offer will be around QAR 490,800,000, representing 60% of the Group's capital, which is QAR 830 million. The number of shares included in the offer is 49,800,000 shares at a pricing of QAR 10.1 per share.
The offer period will be open for two weeks starting Jan. 8, 2017 and ending on Jan. 22, 2017. This will be open for direct subscription by individual Qatari citizens, Qatari companies registered in the State of Qatar or companies incorporated in Qatar and listed on the Qatari stock exchange. The IPO will be offered through The Commercial Bank.
The minimum application by an individual investor or an institutional investor is set at 500 shares. Any application exceeding the minimum application shall be in groups of 100 offer shares The minimum application by a cornerstone investor is set at 1,000,000 shares, with the option of acquiring additional tranches of 100,000 shares over the minimum level. A cornerstone investor may be any of the following: (1) Qatari companies registered in the State of Qatar, or (2) companies incorporated in Qatar and listed on the QSE, or (3) government entities which submit subscription applications for a minimum of 1,000,000 shares. In the event of oversubscription, shares included within this offer will be distributed on a proportional basis to investors, both individuals and entities.
IHG's decision to be listed on the Qatar Stock Exchange is in line with its vision to continue contributing to the development of the local Qatari economy, and increase its shareholder base. Commenting on the IPO, the Chairman of IHG's Board of Directors Ghanim Sultan Al Hodaifi said: "The Qatar private sector is increasingly playing an integral role in further developing the economy, proving to be a real partner in supporting the government's efforts towards achieving a sustainable economy and society. Our proposed listing is also a clear achievement in line with the objectives of Qatar's National Vision 2030 to facilitate collaboration between the public and private sectors."
Al Hodaifi praised the high level of support that the Qatari Government is providing to the private sector, which is in line with the continuous development and ease of processes for companies; especially family businesses, allowing them to become public shareholding companies. All these initiatives are in line with the directives of His Highness the Emir for simplifying processes in order to support the private sector. He stated: "Family businesses must work to improve the efficient management of their share capital by means of expanding their shareholder base by listing on the stock exchange. Our IPO is an opportunity to show how a family owned business has managed to grow to become one of the most comprehensive solution contracting businesses in Qatar's construction sector.
Qatar Stock Exchange is strongly positioned for growth as a result of the resilience of the Qatari economy which enjoys strong investor confidence. This is also attributed to the strength of companies already listed on the stock exchange, which have achieved positive growth during the past year.
Wael Shtayyeh, CEO of IHG, said: "The private sector should contribute to the financial market performance through further listings, as this will widen the diversity and breadth of the listed sectors and increases investor confidence (both for individuals and institutions) for investing in the long-term plans of the listed companies.
Shtayyeh pointed out that "The company's bo
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