Doha: Mesaieed Petro-chemical Holding Company (MPHC) had achieved higher revenues than average of petrochemical sector returns in the region, said H E Dr Mohamed bin Saleh Al Sada, the Minister of Energy and Industry, and the Chairman of the company.
Speaking at the first meeting of the MPHC General Assembly, Dr Al Sada said that the company was able to record a net profit of QR600m for the four-month period ended December 31, 2013, closing the period with total assets of QR13.2bn.
“The company derives its strength from being an umbrella for three of the most successful companies founded by Qatar Petroleum in petrochemicals, including Qatar Chemical Company Ltd (Q-Chem 1), Qatar Chemical Company 2 (Q-Chem 2) and Qatar Vinyl Company Ltd, which are profitable companies and with distinguished operating record, and have the ability to generate strong operating cash flows,” the Minister said.
He added that these companies were able to take advantage of a number of favourable factors such as availability of raw materials of high quality and moderate price, competitive energy prices, as well as integrated plans for production and export, and diverse base of global customers as all production facilities for group companies located in the State of Qatar.
He stressed that the initial strategy to MPHC aims to maximise shareholders value by taking the competitive advantages it enjoys through the company’s leading position in the petrochemical sector.
He said this IPO is the first of a series of initiatives under study aims to maximise the participation of citizens in the successful economic projects successful, and to encourage savings in safe rewarding investments.
The Minister also said the IPO provided an opportunity for all Qatari citizens to benefit directly from the economic growth in the country and the prosperous hydrocarbon sector in Qatar, explaining that the IPO was accompanied with many attractive privileges to encourage a large spectrum of Qatari individuals participating in this offering.
He said the subscription price of shares in MPHC amounted to QR10.20 per share, thus giving shareholders a chance to get the company’s shares at a price less than their true value in addition to the adoption of a policy of allocation which is the first of its kind, with the aim of creating the largest possible base of investors and achieving the greatest degree of justice in the distribution. Dr Al Sada said at the end of the IPO, 1633 shares have been allocated for each shareholder subscribing this number of shares or more, but those who subscribed less than 1633 shares the entire number of their shares have been allocated.
The General Assembly endorsed a recommendation by the company’s board of
directors to distribute cash dividends of QR400m or the equivalent of QR0.35 per share at a rate of 72.1 percent of the realised profit per share. QNA