DOHA: A huge cash-mobilisation effort is on in the cash-rich Qatari community as people are eagerly looking forward to subscribing in a big way to the $3bn mega initial public offering (IPO) to be launched next month by the state-backed Doha Global Investment .
According to financial and stock analyst Bashir Al Kahlout, excited Qataris have so far sought bank loans worth QR7bn ($1.92bn) for the giant primary offer. “There is heightened demand for bank loans in the Qatari community due to the upcoming issue,” Al Kahlout said yesterday. He said small investors were also selling stocks to mobilise cash. Asked about large sell volumes of ordinary Qatari investors on the Qatar Exchange yesterday, he said most booked profits as industrial shares were up and they got a good price.
However, despite a selling spree by the ordinary investors local stocks improved with the main index going up more than 92 points, or over one percent, to 8,535 for the first time in days. This was largely because of the buying support from foreign as well as local institutional investors. Small foreign investors also booked profits yesterday.
Al Kahlout, visibly unimpressed by yesterday’s gains, said Qatari stocks were slipping into a downslide due to a liquidity crunch caused by the excitement about the mega IPO. Some people were offloading stocks and putting their money elsewhere as well, the analyst said.
THE PENINSULA
