Investment Holding Group (IHG) Receives QFMA
Approval for IPO
January 02, 2017
Investment Holding Group (IHG), one of the leading contracting
and trading firms in the Qatari construction
sector, announced on Sunday 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 Jan. 8, 2017
and ending on Jan. 22, 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 100 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 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.”
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.
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.
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 Dec. 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; 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.