IHG receives Qatar Financial Markets Authority (QFMA) approval for IPO:
Doha, January 1st, 2017
Investment Holding Group (IHG), one of the leading contracting and trading firms in the Qatari construction sector, today announced that it has received approval from the Qatar Financial Markets Authority (QFMA) to list 60% 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 QAR 490,800,000, representing 60% of the Group’s capital, which is QAR 830 million. The number of shares included in the offer is 49,800,000 shares at a pricing of QAR 10.1 per share.
The offer period will be open for two weeks starting Sunday the 8th of January, 2017 and ending on Sunday the 22nd of January 2017. This will be open for direct subscription by individual Qatari citizens, Qatari companies registered in the State of 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  Offer Shares The minimum application by a Cornerstone Investor is set at 1,000,000 shares; with the option of acquiring additional tranches of 100,000 shares over the minimum level. A Cornerstone Investor may be any of the following: (1) Qatari companies registered in the State of Qatar, or (2) companies incorporated in Qatar and listed on the QSE, or (3) government entities which submit Subscription Applications for a minimum of 1,000,000 shares. 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 Qatar Stock Exchange is in line with its vision to continue contributing to the development of the local Qatari economy, and increase its shareholder base. Commenting on the IPO, the Chairman of IHG’s Board of Directors, H.E. Mr. Ghanim Sultan Al Hodaifi, stated: “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.”
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. All these initiatives are in line with the directives of His Highness the Emir for simplifying processes in order to support the private sector. He stated: “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.
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.
Mr. Wael Shtayyeh, CEO of IHG, said: “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.
Shtayyeh pointed out that “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”. He praised the support and guidance which were received from the QFMA and from the Qatar Stock Exchange, in facilitating the necessary processes and approving this share offer for Qatari investors – individuals and institutions alike.
Mr. 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 the 12th of December 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; specialized 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.
As a holding company, the Group has the following objectives: Participation in the management of its affiliated companies which it holds shares in; investing its assets in shares, bonds and financial securities; providing the necessary support for subsidiary companies; owning intellectual property rights such as patents, trademarks, industrial samples, franchise rights and other moral rights, and exploiting and leasing them to its subsidiaries or others, whether inside or outside the State of 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.
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%)
The shares are being offered at QAR 10.1 per offer share, representing the nominal value of QAR 10 per offer share, plus offering and listing costs of QAR 0.1 per offer share. Payment should be in full at the time of subscription.
All those hoping to subscribe to this offer should carefully read the prospectus which was approved by the Qatar Financial Markets Authority, and Ministry of Economy and Commerce, including the terms and conditions for subscription. This can be found by downloading the Prospectus page, available on IHG’s website.
For more information and media queries, please contact IHG media office:
Hanane Rougani – Media Relation Manager
Email: [email protected]
Mobile: 00974 55275116
Mohammed Jaradat – Media Relation Manager
Email: [email protected]
Mobile: 00966 540073079
The legal and commercial name of the Company is Investment Holding Group Q.P.S.C. The Company is registered in the State of Qatar as limited liability company and was transformed to a Qatari public shareholding company (Q.P.S.C) by the decision of Minister of Economy and Commerce no 474 / 2016 on 12th of December 2016. The Company holds some or all of the issued share capital of each of its eight Subsidiaries. The Group is engaged in various types of investments in the construction and trading fields inside the State of Qatar.
As of the date of this Prospectus and immediately prior to the Offering, the issued share capital of the Company is QAR 830 million divided into 83 million ordinary Shares. Each Share has a nominal value of 10 Qatari Riyals. All Shares are fully paid up.
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