Mesaieed Petrochemical to raise QR3.23bn in IPO

December 23, 2013 - 4:10:46 am

H E Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry, is flanked by Minister of Finance, Ali Sherif Al Emadi (left) and Director of Finance for Qatar Petroleum Abdulrahman Al Shaibi at a press conference at Sharq Village and Spa yesterday. (Shaival Dalal)

 

DOHA: H E Dr Mohammmed bin Saleh Al Sada, the Minister of Energy and Industry  and H E Ali Sherif Al Emadi, Minister of Finance, yesterday announced Mesaieed Petrochemical Holding Co (MPHC), a subsidiary of Qatar Petroleum (QP), will go for a QR3.23bn initial public offering (IPO) of its shares by the end of this month.

It would be Qatar’s first IPO in three years and the largest in the last four years after Vodafone Qatar raised $1bn in 2009. Given Qatar’s strong market performance, the MPHC’s Offer is likely to attract great demand,  local market watchers noted.

The offering, which lays great emphasis on Qataris getting the dividend of the country’s overall development, comprises a total of 323.18 million ordinary shares, representing 25.725 percent of the issued share capital of the Company. This means, QP will hold 74.275 percent of MPHC after the IPO.

The subscription period will be open from December 31, 2013 until January 21, 2014. The offer price of the shares will be QR10 each, plus listing costs of QR0.20 per share, totaling QR10.20 per share. Qatar National Bank (QNB) has been picked up as the lead receiving Bank. Selected branches of a panel of 11 other banks will participate in the subscription. 

The IPO will be open to all Qatari nationals and certain selected Qatari institutions. The shares are expected to be listed on Qatar Exchange in February 2014.

The Ministers said minimum application by an individual investor is set at 50 shares. No Application by an individual investor for less than 50 shares will be accepted. The maximum application by an individual investor is set at one million Offer Shares. No application by an individual investor exceeding this number shall be accepted. Multiple applications in the name of the same individual investor are prohibited.

The purchase of shares in the offering will entitle Qatari nationals to benefit from the allocation of additional free shares (Incentive Share) after five years and 10 years, provided that by such award dates they have retained at least half of their original shares purchased in the Offering at all times following the Offering. 

Dr Al Sada said: “This IPO is not an isolated event  but is part of a series of IPOs that Qatar Petroleum intends to undertake during the next 10 years in implementation of the directives of H H the Emir to launch initiatives to encourage a long-term investment and saving culture. This is a continuation of our leadership’s policy of putting citizens first, and caring for their welfare and prosperity. It is also a manifestation of a wise policy that has created a partnership for a better future for us and for generations to come.”

The Minister of Finance said: “The IPO of MPHC will be a historic development for Qatar, benefiting Qataris today and for generations to come. It offers all Qatari nationals the opportunity to benefit directly from MPHC’s strategy for growth in the coming years and become long-term shareholders on beneficial terms. We have structured the IPO so that MPHC will offer significant benefits to its individual IPO shareholders.”

The Peninsula

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