Qamco IPO at­tract­ing huge de­mand from Qatar cit­i­zens

Gulf Times Business - - FRONT PAGE -

The ini­tial pub­lic of­fer­ing (IPO) of Qatar Alu­minum Man­u­fac­tur­ing Com­pany ( Qamco) at­tracted a large turnout in the first 10 days of Qatar Petroleum’s of­fer­ing of 49% of its shares to the pub­lic.

Qatar Petroleum an­nounced on Oc­to­ber 22 that it will launch an IPO of shares rep­re­sent­ing 49% of the to­tal cap­i­tal of Qamco, a Qatari pub­lic share­hold­ing com­pany un­der in­cor­po­ra­tion.

The IPO has al­ready started on Oc­to­ber 30 and will con­tinue un­til to­mor­row, November 12.

The IPO is of­fered at 10 riyals and 10 dirhams, with a nom­i­nal value of 10 riyals, in ad­di­tion to the IPO cost of 10 dirhams per share.

Bankers ex­pected more turnout to­mor­row, when the of­fer­ing ends.

They noted that the fa­cil­i­ties of­fered by banks to fi­nance the IPO and the Islamic-based com­mer­cial op­er­a­tions of Qamco have en­cour­aged many peo­ple to par­tic­i­pate in the IPO.

In state­ments to the Qatar News Agency (QNA), CEO of Qatar Islamic Bank (QIB) Group Bas­sel Ja­mal said that the big turnout in the Qamco IPO ex­ceeded ex­pec­ta­tions, and an­tic­i­pated con­tin­ued strong de­mand for the of­fer-

ing dur­ing the re­main­ing days. He said that the big turnout af­firms the strength of the Qatari econ­omy, and the cit­i­zens’ aware­ness of the im­por­tance of in­vest­ment in in­dus­trial com­pa­nies.

In or­der to meet the de­mands of the large num­ber of ap­pli­cants for the IPO, QIB has al­lo­cated 12 branches through­out the coun­try to re­ceive ap­pli­ca­tions in the morn­ing and evening, in or­der to re­duce wait­ing time for cus­tomers, QIB CEO noted.

Those branches have been as­signed with well-trained staff to han­dle and an­swer all in­quiries from cus­tomers about the IPO ap­pli­ca­tion.

The bank has also of­fered sep­a­rate sec­tions for spe­cial clients and women to meet their needs and pro­vide pri­vacy in their trans­ac­tions, he added.

As for the fa­cil­i­ties pro­vided by the bank, the CEO said that the bank pro­vides im­me­di­ate fi­nanc­ing for the IPO reach­ing up to 65% of the value of the shares.

As a spe­cial ges­ture to sup­port cit­i­zens, profit will be cal­cu­lated on the share of fund­ing from the amount al­lo­cated only from the date al­lo­ca­tion and will not be cal­cu­lated on any sur­plus, he said.

For his part, the deputy CEO of Qatar In­ter­na­tional Islamic Bank (QIIB), Ja­mal Ab­dul­lah al-Ja­mal, said in a state­ment to QNA that the man­age­ment of the bank has no­ticed through the Qamco IPO that cit­i­zens are keen on con­tribut­ing more to the de­vel­op­ment of the na­tional econ­omy.

He noted that this en­thu­si­asm is a re­flec­tion of the fact that Qatar’s econ­omy en­joys the strength that en­abled it to be­come a re­gional leader and has be­come a highly com­pet­i­tive global eco­nomic force.

He added that the govern­ment strat­egy is to en­cour­age Qataris to con­trib­ute ef­fec­tively to the growth and pros­per­ity of their coun­try’s econ­omy; this in­cludes own­ing shares in na­tional com­pa­nies such as Qamco.

Al-Ja­mal added that through the 15 branches of QIIB that par­tic­i­pated in the IPO process, the bank has wit­nessed a strong de­mand for IPO, not­ing that this is very pos­i­tive and in­di­cates the de­sire of sub­scribers to con­trib­ute to the econ­omy and take ad­van­tage of the ex­cel­lent in­vest­ment op­por­tu­nity of­fered by Qamco, as well as the strong in­vest­ment cli­mate of the Qatar Stock Ex­change.

He noted that QIIB pro­vided all nec­es­sary fa­cil­i­ties to the sub­scribers, in­clud­ing fi­nanc­ing for those wish­ing to subscribe by 65%. The bank has en­sured that the fi­nanc­ing op­er­a­tions are flex­i­ble, easy and that the man­age­ment takes into con­sid­er­a­tion the stan­dards adopted in all as­pects.

He said that the man­age­ment of the bank con­sid­ered its par­tic­i­pa­tion in the IPO process as an op­por­tu­nity to serve the econ­omy, rather than be­ing an op­por­tu­nity to profit.

For his part, CEO of the Share­hold­ers Af­fairs Depart­ment at Doha Bank, Ab­dul­lah al-Asadi said that the bank was one of the Qatari banks that opened its doors to the IPO and at­tracted a large turnout by cit­i­zens since the early hours of launch­ing of the of­fer­ing on Oc­to­ber 30.

He noted that Doha Bank is re­ceiv­ing ap­pli­ca­tions through its branches across the coun­try and es­tab­lished a sub­scrip­tion cen­tre for those wish­ing to buy Qamco shares in its main branch, which has about 20 coun­ters to ap­ply.

Al-Asadi ex­pected that the turnout will in­crease dur­ing the last two days of the IPO, say­ing that the fa­cil­i­ties pro­vided by the banks, in­clud­ing Doha Bank, en­cour­age cus­tomers to par­tic­i­pate in the IPO.

Qatar Na­tional Bank (QNB), the largest fi­nan­cial in­sti­tu­tion in the State of Qatar, an­nounced in a press re­lease re­cently that it will fi­nance sub­scrip­tions to the IPO of Qamco, where the bank will fi­nance 65% of the to­tal value of shares that Qatari QNB cus­tomers wish to pur­chase, with the ca­pa­bil­ity of pro­vid­ing them the fi­nance at 0% in­ter­est, un­til the sur­plus shares are al­lo­cated.

QNB also of­fered a sim­ple sub­scrip­tion process by vis­it­ing the web­site and down­load­ing the form, fill­ing it out, sign­ing it, and send­ing it to the bank. along with the re­quired doc­u­ments.

Af­ter reg­is­ter­ing on­line, cus­tomers can eas­ily subscribe to the IPO on­line or through SMS any­time. Qamco will hold 50% stake in Qatar Alu­minium Lim­ited (Qatalum), a joint venture be­tween QP and Nor­we­gian com­pany Hy­dro.

QP will trans­fer its en­tire 50% stake in Qatalum, to Qamco.

Qatar Petroleum is the sole founder of Qamco, which has a pro­posed is­sued share cap­i­tal of QR 5.58bn of 558mn or­di­nary shares.

Af­ter the IPO, QP will have 51% stake and the bal­ance 49% will be owned by the pub­lic. Trad­ing on the Qatar Stock Ex­change is ex­pected to be­gin in mid-December 2018, af­ter ob­tain­ing reg­u­la­tory ap­provals.

A view of the head­quar­ters of Qatar Petroleum in Doha. QP has launched an IPO of shares rep­re­sent­ing 49% of the to­tal cap­i­tal of Qamco, a Qatari pub­lic share­hold­ing com­pany un­der in­cor­po­ra­tion.

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