Monday, April 8, 2013

Qatar eyes IPO for $12bn vehicle

Qatar is planning to offer shares in a new $12bn investment vehicle in May, in a move that will set in train one of the largest initial public offerings (IPOs) in the Middle East.

The investment vehicle – called Doha Global Investment Co – will list on the local stock market after the end of a public subscription period, Hussain Ali Al Abdulla, chairman of Qatar Exchange, said on Sunday.
He added that the IPO will be open only to Qatari companies, institutions and citizens and the nominal value of the shares listed will be 10 Qatari riyals. Foreign investors will be able to buy the company’s shares after the as-yet unspecified listing date.

Qatar announced the creation of the investment vehicle two months ago, in a move analysts said was aimed at boosting its international clout, and enriching its tiny population. The entity will be half-owned by the country’s sovereign wealth fund and is planning to invest across asset classes – potentially expanding Qatar’s widespread and fast-growing portfolio of global investments that range from German carmakers Porsche and Volkswagen to Tiffany, the American jeweller.

The investment firm will give the Qatari people and its companies “the opportunity to enjoy the access and deal flow that Qatar Holding has”, Ahmad al-Sayed, chief executive of Qatar Holding, the sovereign wealth fund, said in February. Qatar Holding has stood out from its sovereign wealth fund peers in the Gulf over the past year by investing in high-profile assets in the wake of the financial crisis.

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