DOHA: Citizens, who are allotted the shares of Mesaieed Petrochemical Holding Company (MPHC) via a low-priced IPO that is all set for launch today, will need permission from the local bourse to sell more than 50 percent of the scrip after listing.
Qatar Exchange (QE) yesterday reached a deal with the MPHC to restrict successful IPO subscribers from offloading or transferring more than half the allotted shares after the securities are listed on the bourse.
The above limit is being imposed in line with the nature of the IPO that aims at helping successful Qatari subscribers build wealth (capital gains and regular dividend income) over the long-term.
The IPO is open for subscription to Qatari individuals only and a select few local institutions.
Anyone who wishes to offer his or her shares for sale or transfer in anyone else’s name exceeding the above limit will be required to fill up a special application form.
And the forms will be needed to be filled up in person as representation will not be allowed.
The person who chooses to sell or transfer more than half his allotted shares will lose the opportunity to earn bonus shares after five and 10 years.
The bourse has also decided to freeze 50 percent of the shares allotted via the IPO, to those who are below 18 years of age.
Shareholders (once successful subscribers to the IPO become shareholders of the MPHC) will not have the right to insist on a change to the above rules at the company’s annual general meetings, it is understood.
Meanwhile, a total of 12 banks, including the lead receiving bank, QNB, have said, beginning today, they will be opening dedicated counters to receive subscriptions to the IPO that closes on January 21, 2014.