DOHA: To make sure that the fruits of development reach even the most disadvantaged sections of the Qatari society, the country yesterday announced several new privileges to the citizens.
The government will distribute 750 shares of the Mesaieed Petrochemical Holding Company (MPHC) as a gift to each disadvantaged citizen, including those receiving social security benefits and people with special needs.
All the citizens will have a rare benefit of getting additional free share — Incentive Share — while purchasing shares of MPHC. For each share purchased in the Initial Public Offering (IPO), the eligible investor will receive one additional Incentive Share, free of charge over the period, it was announced yesterday.
MPHC, a unit of state-owned energy giant Qatar Petroleum, will go for a QR3.23bn IPO of its shares from December 31.
In a move to encourage savings for the young generation, it was announced that 50 percent of the shares subscribed for at the IPO on behalf of minors cannot be traded on Qatar Exchange for as long as those subscribers remain minors.
The Minister of Energy and Industry H E Dr Mohammed bin Saleh Al Sada said yesterday’s offer for Qataris is the first of a series to come in the coming months.
“Qatar is in the process of launching a long-term investment and saving programme for the citizens. There will be a series of share issues to be offered by certain state-owned enterprises in the form of IPOs in Qatar. All Qatari nationals will have the opportunity to personally participate in and benefit from these share issues.”
The objectives of the new initiatives are to allow Qatari families to create wealth as well as invest and save for their future. These IPOs will give Qatari families the opportunity to take part in the economic success of the country and benefit from its growth story, he said.
The MPHC’s incentives to the Qataris is not an isolated one but is part of a series of IPOs that QP intends to undertake during the next 10 years under the directives of the Emir H H Sheikh Tamim bin Hamad Al Thani.
Qatar plans to conduct IPOs worth QR50bn in its stock market over the next 10 years, news agencies reported yesterday.
Incentive Shares are ordinary shares of MPHC which rank equally with the offer shares in all respects.
As much as 50 percent of Incentive Shares will be awarded on the date falling five years from the IPO date and the remaining 50 percent will be awarded 10 years after the date of the IPO.
Incentive Shares will be awarded to Qatari who have retained at all times at least half of their offer shares by such dates.