Qatar's major family business Investment Holding Group (IHG) is going public.
The Group, which is one of the leading contracting and trading firms in the Qatari construction sector, yesterday announced that it has received approval from the Qatar Financial Markets Authority (QFMA) to list 60 percent of the Group’s paid-up share capital through an Initial Public Offering (IP0), making it the first Qatari family business to receive approval to list its shares on the Qatar Stock Exchange (QSE) through an IPO.
The total value offer will be around QR490.8m representing 60 percent of the Group’s capital, which is QR830m. The number of shares included in the offer is 49.8 million shares at a pricing of QR10.1 per share.
The offer period will be open for two weeks starting January, 8 and ending on January 22. This will be open for direct subscription by individual Qatari citizens, Qatari companies registered in Qatar or companies incorporated in Qatar and listed on the Qatari stock exchange. The IPO will be offered through The Commercial Bank.
The minimum application by an individual investor or an institutional investor is set at 500 shares; any application exceeding the Minimum Application shall be in groups of 100 Offer Shares.
The minimum application by a Cornerstone Investor is set at 1 million shares; with the option of acquiring additional tranches of 100,000 shares over the minimum level.
In the event of oversubscription, shares included within this offer will be distributed on a proportional basis to investors, both individuals and entities.
IHG’s decision to be listed on the QSE is in line with its vision to continue contributing to the development of the local Qatari economy, and increase its shareholder base.
“The Qatar private sector is increasingly playing an integral role in further developing the economy, proving to be a real partner in supporting the government’s efforts towards achieving a sustainable economy and society. Our proposed listing is also a clear achievement in line with the objectives of Qatar’s National Vision 2030 to facilitate collaboration between the public and private sectors,” said Ghanim Sultan Al Hodaifi, Chairman of IHG’s Board of Directors. Al Hodaifi praised the high level of support that the Qatari Government is providing to the private sector, which is in line with the continuous development and ease of processes for companies; especially family businesses, allowing them to become public shareholding companies.
“Family businesses must work to improve the efficient management of their share capital by means of expanding their shareholder base by listing on the stock exchange. Our IPO is an opportunity to show how a family owned business has managed to grow to become one of the most comprehensive solution contracting businesses in Qatar’s construction sector,” he added.
Qatar Stock Exchange is strongly positioned for growth as a result of the resilience of the Qatari economy which enjoys strong investor confidence. This is also attributed to the strength of companies already listed on the stock exchange, which have achieved positive growth during the past year. “The private sector should contribute to the financial market performance through further listings, as this will widen the diversity and breadth of the listed sectors and increases investor confidence (both for individuals and institutions) for investing in the long-term plans of the listed companies,” said Wael Shtayyeh, CEO of IHG.
“The Company’s board of directors is proud to offer the Qatari financial markets its first case of listing a family business through an IPO as a first public shareholding company”. Shtayyeh added,
“Given the Group’s long expertise in the Qatari construction sector; consistent growth and strong performance of its subsidiary companies, in addition to the wide positive economic indicators, we are confident that there will be a strong investor response to the subscription.”
IHG obtained permission from the Minister of Economy and Commerce for its conversion into a Qatari Public Company on December 12, 2016, having proven its strong presence in the Qatari construction sector for over 40 years.
Today the company has become a leading player in diverse commercial activities across various segments of the contracting sector. This includes contracts for construction projects; specialised contracting (mechanical, electrical and plumbing [MEP]; engineering construction and projects [ECP]).The company is also a supplier of building materials, safety equipment, tools, timber, security systems, firefighting systems and other related materials.
The Company is the direct or indirect legal owner of: Construction Development Contracting & Trading W.L.L (51%); Debbas Enterprise Qatar W.L.L (51%); Electro Mechanical Engineering Company W.L.L (68.5%); Consolidated Engineering Systems Company W.L.L. (60.4%); Watermaster (Qatar) W.L.L. (63.3%); Trelco Limited Company W.L.L (100%); Consolidated Supplies Company W.L.L. (75.5%); and Trelco Building Materials Company W.L.L. (85%)
