Qatar to float $12bn investment firm

February 20, 2013 - 2:36:27 am

DOHA: The Capital of Qatar’s proposed Doha Global Investment Company will be $12bn. Of the $6bn paid up capital, Qatar Investment Authority’s (QIA) foreign investment arm Qatar Holding will spin off $3bn and the remaining $3bn would be raised through public offerings.

The details of Qatar’s latest big ticket overseas investment company, which the Supreme Council of Economic Affairs and Investment decided to set up in its February 10 meeting, was disclosed by a top official of Qatar Investment Authority in a meeting with Qatari businessmen at Qatar Chamber here yesterday.

Of the total $12bn capital, 50 percent has already been committed by the Government. Qatar Holding will contribute $3bn. Different companies, financial institutions and businessmen would chip in with $2.5bn. The remaining $500m will be invested by Qatari citizens and small institutions. The $500m slab set for the individuals and small investors would be raised further to a level of 14 percent, if necessary, Dr Hussein Al Abdullah, member of Board of Directors, QIA said .

The new firm will be a totally independent entity with 9 board members. Five members will be representing various financial institutions and the private sector. The remaining four members would be the nominees of Qatar Holding, including its chairman and the Board of Directors.

The IPO for $3bn will be launched in six to eight weeks with QR10 being the nominal value of a share. Initially, the company will be listed on Qatar Exchange and would go for dual listing in the future. The IPO is expected to be open only to Qataris, but foreign investors will be able to buy in later.

The company will invest in shares, bonds, real estate, direct investments and in different portfolio across the world. 

“This is a global investment company to invest overseas, not in Qatar. The company’s capital will be increased in the future. It guarantees a 5 percent dividend in its first year of operations, Dr Hussain Al Abdullah said.

Bankers and Market experts are keenly watching Qatar’s latest big ticket announcement. 

“This is absolutely the right step in concept. It’s a good opportunity for the nationals to make incremental wealth”, said R Seetharaman, Chief Executive Officer of Doha Bank.

 

Initially, Qataris will be given preferences in the investment. International investment can also come in at later stage, he said.

Naser Al Khaledi, Director of an Oman-Qatar joint venture company said: “It is a strategic move to ensure that private sector is getting a better role in Qatar’s growing economy. In terms of foreign investment, the GCC companies must be given priority”, he said.

The Peninsula
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