One of the largest health insurance company the region, Doha-based QLM Life and Health Insurance, a subsidiary of Qatar Insurance Company is all set to launch an Initial Public Offering (IPO) to raise as much as $181.1 million.
QLM is expected to offer up to 60 percent of the company’s capital which is equivalent to 210,000,000 shares at an offer price of $.87 per share excluding the offering costs.
QLM has divided the market value at the initial public offering by the number of the company’s 350,000,000 shares after being converted into a public joint-stock company to reach the per-share price of $.87.
The offer price includes a nominal value of $.27 along with a premium of $.59 as well as costs of the offering and the listing fee.
With the listing, QLM’s implied total market capitalization at IPO will be at 300 million.
Qatar Insurance Company (QIC), the selling shareholder will continue to hold a 25 percent stake in the company as an obligation.
Qatar-based Qatari citizens and legal entities who hold the valid registration certificate in the Commercial Registry issued by the Ministry of Commerce and Industry are considered as eligible investors at the offering.
The firm has also taken advance commitments from some of the principal investors to subscribe to 15 percent of the company’s capital during the IPO.
- Subscription Period: December 10, 2020, to December 23, 2020
- Allocation and Refund of surplus subscription to be completed by December 29, 2020.
- The Constituent General Assembly will be held on December 30.
- The firm’s transformation into a Qatari public shareholding company will happen on December 31, 2020
- First trade on the Qatar Stock Exchange (QSE) is expected to happen on January 6, 2021.
In a statement, the QLM stated that “The 210,000,000 shares are offered for subscription by qualified investors, representing 60 percent of the company’s issued capital. These shares are offered by the sole selling shareholder, Qatar Insurance Company, which will retain 25 percent of the issued capital of the company following the IPO.”
Leading banks in the region including Commercial Bank of Qatar, Ahli Bank, Doha Bank and Al Khaliji Commercial Bank are expected to take part in the IPO process.