Gulf Times - Gulf Times Business
Qamco IPO attracting huge demand from Qatar citizens
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.