30/01/2014 05:14 AST
The initial public offer (IPO) of Mesaieed Petrochemical Holding Company (MPHC), first such offer in three years in the country, has been oversubscribed five times, Qatar Petroleum (QP), its parent company, said yesterday finalising the allocation.
The maximum number of shares allocated per individual investor is 1,633, in accordance with the allocation policy set out in the prospectus of MPHC, which will start trading on the Qatar Exchange from February.
The excess demand for MPHC shares has been along the lines of previous such offers of QP units as Industries Qatar and Gulf International Services, which had seen oversubscription to the tune of five times each.
QP had offered 323.19mn shares (or about 26% of its capital) at QR10.2 a piece through the IPO, which ran from December 31 to January 21, to garner as much as QR3.23bn.
“Shares offered to individual investors were five times subscribed,” QP said, adding the demand for MPHC shares from Qatari nationals reflects the trust that local citizens place in QP and its projects.
MPHC’S competitive advantages include reliable and competitive feedstock supply, low energy costs, an excellent strategic location, a global and diverse customer base and highly integrated operations.
“The overwhelming response to the IPO reflects Qatari nationals’ confidence in the strength and durability of the national economy and the policies pursued by the government...The subscription process was very smooth, indicating the maturity of Qatar Petroleum’s position as a national leader,” HE Minister of Energy and Industry Dr Mohamed bin Saleh al-Sada said.
The minister, who is also QP chairman, said allocation of shares would be as per the prospectus of MPHC, an umbrella holding for Q-Chem I, Q-Chem II and Qatar Vinyl Company, together which generated aggregate revenue of QR4.3bn and net profit of QR1.6bn in 2012.
Banks will inform individual investors by SMS today of how many shares they have been allocated and of any refunds that are being made into the bank accounts, said MPHC. Subscriptions between 50 and 750 shares have been allotted in full, while applicants who applied for more than 750 shares have been allocated shares in line with the MPHC prospectus, which factored in equal distribution policy rather than a pro-rata policy.
“The equal distribution policy is effective in broadening the base of subscribers and distributing shares in a way which is fair to everyone,” MPHC said.
The IPO, through which QP offloaded a 26% stake to the public, was primarily reserved for Qatari private individuals with a minimum subscription of 50 shares and a maximum of 1mn.
Gulf Times
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