Qataris eagerly await multi-billion dollar IPO

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Qatar is all set to launch the primary subscription of the newly established Doha Global Investment Company, which will make overseas investments.
Qatar is set to launch the primary subscription of the newly established Doha Global Investment Company, which will make overseas investments. Photo-Omar Chatriwala/Flickr

A multi-billion dollar initial public offering (IPO) will allow ordinary citizens and financial institutions to subscribe to shares of a recently launched investment company in Qatar.

The IPO of Doha Global Investment Company, scheduled for next month, is eagerly awaited by ordinary Qatari investors for subscription. During the last decade, Qatar has issued three IPO’s, Woqod (early 2002), Industries Qatar (May 2003) and Nakilat (January 2005). The three IPO’s were subscribed by locals before the Qatari equity market was opened to foreigners for trading in April 2005.

According to Qatar News Agency (QNA), the face value of the shares of Doha Global Investment Company has been set at QR10.  The new firm will have a total capital of USD 12.36 billion, half of which will be in the form of paid-up capital. About 50 percent of the company’s capital will be provided by Qatar Holding, the investment arm of the country’s sovereign wealth fund, the Qatar Investment Authority (QIA).

Earlier media reports had suggested that Qatar Holding will contribute an estimated USD 3 billion to the new company’s capital and an equal amount was to be raised via a public offering. Non-Qatari investors will only be allowed trading in the shares after share allotment processes have been completed and they are listed on Qatar Exchange.

The newly established Doha Global Investment Company will invest overseas, with more capital will be raised in future. During the first year of operations, the company will guarantee a five percent dividend to investors.

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