DOHA: The initial public officering (IPO) of Qatar Aluminium Manufacturing Company (Qamco) has evoked huge response from investors. The first 10 days of the Qatar Petroleum’s offering of 49 percent of its shares to the public saw strong demand from investors; QNA reported after speaking to senior executives of some of the participating banks.
“The big response to Qamco IPO exceeded our expectations and we continue to expect strong demand during the remaining days”, QIB Group CEO Bassel Jamal said. The investors’ response affirms the strength of the Qatari economy, and the citizens’ awareness of the importance of investment in industrial companies.
In order to meet the demands of the large number of applicants for IPO, the QIB allocated 12 branches throughout the country to receive applications in the morning and evening, facilitating a smooth subscription to the shares, QIB CEO noted.
Those branches have been provided with well-trained staff to handle and answer all inquiries from customers about the IPO application. The bank also offered special sections for special clients and women to meet their needs and provide privacy in their transactions, he added.
As for the facilities provided by the bank, the CEO said that the bank provides immediate financing for the IPO reaching up to 65 percent of the value of the shares. As a special gesture to support citizens, the profit will be calculated on the share of funding from the amount allocated only from the date allocation and will not be calculated on any surplus, he said.
QIIB’s Deputy CEO Jamal Abdullah said the investors’ response is a reflection of the fact that the Qatari economy enjoys all the strength that enabled it to become a regional leader and has become a highly competitive global economic center.
He added that the government strategy is to encourage Qataris to contribute effectively to the growth and prosperity of their country’s economy, this includes owning shares in national companies such as Qamco.
Al Jamal added that QIIB participated in the IPO process through 15 branches of the bank. The bank witnessed strong demand for IPO. This is very positive and indicates the desire of subscribers to contribute to the economy and take advantage of the excellent investment opportunity offered by Qamco IPO, as well as the strong investment attractiveness of Qatar Stock Exchange.
He noted that QIIB provided all necessary facilities to the subscribers as it provided financing for those wishing to subscribe by 65 percent. The Bank ensured that the financing operations are flexible, easy and that they take into consideration the standards adopted in all aspects.
Abdullah Al Asadi, Head of Shareholder Affairs at Doha Bank said that Doha Bank said that the bank was one of the Qatari banks that opened its doors to IPO and attracted a large turnout by citizens since the early hours of launching the IPO on October 30.
Doha Bank is receiving applications through its branches across the country and established a subscription center for those wishing to buy Qamco shares in its main branch with a dedicated 20 counters. Al Asadi expects that the demand will increase during the last two days of the IPO.
QNB, the largest financial institution in the region, announced recently that it will finance subscriptions to the IPO of Qamco, where the bank will finance 65 percent of the total value of shares that Qatari QNB customers wish to purchase, with the capability of providing them at ‘0’ percent interest until the surplus shares are allocated.
Qatar Petroleum is the sole founder of Qamco, which has a proposed issued share capital of QR5.58bn of 558 million ordinary shares. After the IPO, QP will have 51 percent stake and the balance 49 percent with the public. Trading on the Qatar Stock Exchange (QSE) is expected to begin in mid-December 2018, after obtaining regulatory approvals.
