QP announces IPO of Mesaieed Petrochemical Holding Company
The Mesaieed Petrochemical Holding Company (MPHC) will issue an initial share capital of 26 percent worth QAR3.2 billion.
MPHC owns shares in downstream petrochemical companies, Q-Chem I, Q-Chem II and Qatar Vinyl Company which according to a statement released to the press generated MPHC’s stake on aggregate QAR1.6 billion in net-profit in 2012.
The IPO will only be available to Qataris and priced at QAR10 per share. “The IPO is being undertaken as part of the State of Qatar’s policy to encourage long-term investment,” said the press statement, “and the continued development of a personal savings culture among Qatari nationals, and will give Qatari citizens the opportunity to share in the State’s current and future wealth. This IPO will initiate Qatar Petroleum’s 10-year investment and savings programme that the State of Qatar is implementing for Qatari nationals.”
To encourage long-term investment by locals, MPHC is also offering free incentive shares, where shareholders will receive an ordinary share for each share allocated during the IPO, 50 percent of which will be awarded five years from the IPO date, and the remaining 50 percent 10 years from the IPO date. Limitations have also been set on trading of shares of minors “in order to encourage wealth retention for the young generation,” said the statement.
Al Sada also added that this IPO was not an isolated event but part of a series of IPOs that Qatar Petroleum intends to undertake.
The IPO subscription period will open on 31 December 2013 and close on 21 January 2014.