The Qatar Stock Exchange (QSE) has termed the listing of QLM Medical and Life Insurance Company, expected by January first week, as an "important addition" that will give more depth to the market.
It (the proposed listing of QLM) "will act as a gateway for investment diversification, deepening the market, and attracting more local and foreign investments", QSE chief executive Rashid bin Ali al-Mansoori said in a tweet yesterday.
He said the expected listing of QLM in the first week of January represents an important addition to the market. At present, the market has 47 listed companies, including five in the insurance sector.
QLM, a subsidiary of Qatar Insurance Group, had last week opened the subscription for its initial public offering (IPO), through which it aims to raise as much as QR659.4mn.
The inclusion of new companies contributes to stimulating trading and enhancing investors' confidence as well as liquidity in the QSE, which has become a well-established financial market, the QSE official said.
The market has all the ingredients needed for success and sustainability, al-Mansoori said, reasoning that the QSE has proven its efficiency and durability of investments during many crises, the latest of which is the Covid-19 pandemic. The QSE is now trading in the positive trajectory year-to-date.
QLM, which has 350mn shares, is offering 60% or 210mn shares to the public through the IPO at QR3.15 a piece (including QR2.14 premium and QR0.01 listing fees).
The IPO, which is being offered, corresponds to a total market capitalisation of QR1.1bn. The IPO subscription will close on December 23.
After the maiden offer, Qatar Insurance Group will retain 25% stake and the other 15% will be retained by other pre-IPO investors or founders.
Sheikh Saud bin Khalid Al Thani, chairman of QLM, had highlighted the operational maturity and an "excellent" financial condition (as it enjoys strong profitability and high dividend paying capacity) to be the reasons for tapping the market.
QIC Group chief executive Salem Khalaf al-Mannai had said QLM has priced the offer shares at a premium to its book value as it enjoyed continuous profits since establishment over nine years ago, thus accumulating "sizeable" undistributed profits, reserves and surpluses on its balance sheet over and above its share capital.
QLM, which is the largest provider of group medical insurance in Qatar based on the number of members and gross written premiums (GWP), is expected to be listed on the Qatar Stock Exchange by January 6, 2021.
QLM, whose solvency ratios have consistently been above the statutory requirements, has diverse portfolio of clients with no single customer representing more than 8% of the GWP.
The company has an extensive network of Healthcare providers in Qatar and abroad with more than 75,000 medical service providers spanning around 100 countries on six continents.
QLM's conversion into a public shareholding company is expected to be completed by December 29 and the first constituent general assembly is scheduled for December 30, 2020.