DGIC will look to complete the deal in May with a targeted free-float of 50%, according to the chairman of the Qatar Exchange, Hussain Ali Al Abdulla. The IPO will only be open to Qatari companies, institutions and citizens, while non-Qataris will be able to trade and buy in the aftermarket, Abdulla said.
The sovereign fund, the Qatar Investment Authority, first announced plans to list the a new US$12bn fund earlier this year.
The idea was to set up a new fund under Qatar Holding – the QIA subsidiary that invests in foreign assets – that will make new overseas investments. The IPO will be of an entirely new fund with Qatar Holding putting in QR22.5bn in return for a 50% stake, and the rest open for subscriptions.
It will also allow Qatari investors and citizens to have access to the country’s powerful investment machine. The fund will be overseen by Qatar Holding, which has stakes in companies like Porsche, Tiffany, Barclays and Xstrata, though Doha Global Investment Co will be separate from Qatar Holding’s existing investments.
Qatar Holding will also put in QR22.5bn for half the share capital, with the rest open for subscription, Abdulla said.
The Qatari government is keen to boost liquidity in the Qatar Exchange. Equity capital markets activity is low in the Gulf partly because the local bourses are underdeveloped, bankers told IFR.
“What the local exchanges need is government privatisations to give them a boost and inject some liquidity,” one ECM banker covering emerging EMEA told IFR.
One jumbo listing alone will not be enough; a strong pipeline of privatisation deals would be required, he said.
Source :
Qatar Chronicle
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