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Qatari contractor IHG wins nod for $135m IPO listing

DOHA, January 2, 2017

Investment Holding Group (IHG) one of the leading contracting and trading firms in the Qatari construction sector, said it has won approval from the Qatar Financial Markets Authority to list 60 per cent of its paid-up share capital through an initial public offering (IPO).

This makes it the first Qatari family business to receive approval to list its shares on the Qatar Stock Exchange (QSE) through a public issue.

The Qatari contractor said the total value offer will be around QR491 million ($135 million), representing 60 per cent of the group’s capital, which is QR830 million ($228 million).

The number of shares included in the offer is 49.8 million shares at a pricing of QR10.1 ($2.8) per share.
The offer period will be open for two weeks starting from January 8 to January 22, it stated.

According to IHG, individual Qatari citizens, local companies registered in Qatar or companies incorporated in the country and listed on the Qatari stock exchange can directly subscribe for the shares. 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, it added.

IHG pointed out that its decision to be listed on the QSE was in line with its vision to continue contributing to the development of the local Qatari economy, and increase its shareholder base.

The company has proven its strong presence in the Qatari construction sector for over 40 years. Today it has become a leading player in diverse commercial activities across various segments of the contracting sector.

This includes contracts for construction projects and specialised contracting (mechanical, electrical and plumbing [MEP]; engineering, procurement and construction [EPC]). The company is also a supplier of building materials, safety equipment, tools, timber, security systems and firefighting systems.

Commenting on the IPO, the chairman of IHG’s board of directors, Ghanim Sultan Al Hodaifi, said: "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," he stated.

Al Hodaifi called upon family businesses in Qatar to work hard to improve the efficient management of their share capitals through expansion of shareholder base by listing on the stock exchange.

"Our IPO is an opportunity to show how a family-owned group has managed to grow to become one of the most comprehensive solution contracting businesses in Qatar’s construction sector," he remarked.

CEO Wael Shtayyeh pointed out that the private sector should contribute to the financial market performance through further listings, as this would widen the diversity and breadth of the listed sectors and increase investor confidence (both for individuals and institutions) for investing in the long-term plans of the listed companies.

Shtayyeh said the company’s board was proud to offer the Qatari financial markets its first case of listing a family business through an IPO as a first  public shareholding company.

As a holding company, IHG has several objectives such as participation in management of its affiliated companies which it holds shares in; investing assets in shares, bonds and financial securities; providing necessary support for subsidiaries; owning intellectual property rights such as patents, trademarks, industrial samples, franchise and other moral rights, and leasing them to subsidiaries, whether inside or outside Qatar; as well as, ensuring the ownership of movable assets and real estate necessary for the conduct of its business within the limits allowed by law.

IHG is the direct or indirect legal owner of Construction Development Contracting & Trading (51 per cent); Debbas Enterprise Qatar (51 per cent); Electro Mechanical Engineering Company (68.5 per cent); Consolidated Engineering Systems Company (60.4 per cent); Watermaster (Qatar) (63.3 per cent); Trelco Limited Company (100 per cent); Consolidated Supplies Company (75.5 per cent); and Trelco Building Materials Company (85 per cent).-TradeArabia News Service

Tags: approval | IPO listing | Qatari contractor | Investment Holding Group |

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