QR2.73bn Qamco IPO to hit market on October 30
October 22 2018 01:16 PM
Saad bin Sherida Al Kaabi, the President and CEO of Qatar Petroleum announces the IPO of Qatar Alumi
Saad bin Sherida Al Kaabi, the President and CEO of Qatar Petroleum, announces the IPO of Qatar Aluminium Manufacturing Company. PHOTO: Jayan Orma

QP is sole founder of Qatar Aluminum Manufacturing Company which has a proposed issued share capital of QR5.58bn of 558.01mn ordinary shares and one special share with nominal value of QR10 each


The QR2.73bn initial public offering (IPO) of the proposed Qatar Aluminum Manufacturing Company (Qamco) will hit the market on October 30, offering 49% to citizens.

Qatar Petroleum (QP) is the sole founder of Qamco, which has a proposed issued share capital of QR5.58bn of 558.01mn ordinary shares and one special share with nominal value of QR10 each.

QP is offering 273.43mn shares of Qamco at QR10.1 (including the listing costs of 10 dirhams). The offer will remain on tap until November 12.

Qamco will hold 50% stake in Qatalum, a joint venture between QP and Norwegian company Hydro. QP will transfer its entire 50% stake in Qatalum, QP's successful downstream venture, to Qamco.

Shares are expected to be traded on the Qatar Stock Exchange by mid-December after obtaining all remaining regulatory approvals.

After the IPO, QP will have 51% stake and the balance 49% with the public. Of the 49% IPO, as much as 44% or 245.53mn shares would be allotted for individuals and the remaining 5% or 27.9mn shares for select institutions. Individuals can subscribe a minimum of 50 shares and maximum of 11.16mn shares.

In the first allocation tranche, subscriptions of 50-750 offer shares (inclusive) will be allotted in full and in the second tranche, subscriptions of more than 750 offer shares will be allotted in multiples of 50 offer shares.

“This IPO represents a new and important investment opportunity to Qatari nationals. The Qamco IPO is a new milestone event in the history of IPOs in Qatar, which will give Qatari citizens the opportunity to share in the rewarding returns generated by Qatar Aluminum through an IPO," QP president and chief executive officer Saad Sherida al-Kaabi told reporters here on Monday.

The move comes in the backdrop of His Highness the Amir's directives to enhance strong investment opportunities and instill a culture of long-term savings for Qatari investors and their progeny.

The Qamco IPO is aimed at achieving Qatar’s economic vision by delivering greater privatisation and supporting capital markets. The listing will further diversify investment opportunities on the Qatar Stock Exchange.

Al-Kaabi said Qamco would pay dividend this year. As per its prospectus, dividend paid amounted to $155.2mn (QR564.93mn) in the first six months of this year compared to $180mn (QR655mn for the entire 2017).

In its 2013 strategy, QP had said it was contemplating a series of IPOs for its subsidiaries over the next 10 years, after launching the maiden offer of Mesaieed Petrochemicals Holding Company.

The last time the country witnessed a maiden offer from the QP’s stable was Mesaieed Petrochemical Holding Company, a holding entity for Q Chem, Q Chem I and Qatar Vinyl Company.

Last updated: October 22 2018 07:28 PM


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