DOHA: Mazaya Qatar Real Estate Development (QSC) announced achieving 100 percent subscription of its Initial Public Offering (IPO).
The total put up shares reached 50 million, with QR10 being the nominal value per share, issued and fully paid would reach QR1bn, a statement issued by the company said here yesterday.
The company will use its current and subscribed capital to fund its operations and future plans. An economic feasibility study conducted by the company shows the way of employing these funds across a 5-year period.
Rashid Fahad Al Naimi, Chairman of Mazaya Qatar, said: "There is a strong trust in the company and its management to undertake many successful real estate projects that we believe to be needed by the market. We have agreed on some of these projects and others are under discussion. This will help support the stability of the company's performance in the coming years through implementing limited risk projects by guaranteeing demand for these projects prior to commencing execution."
"The company is satisfied with the IPO's performance, being the first subscription of its kind in Qatar during the current year not to mention its occurrence immediately after one of the worst economic crisis in history since the 1930," the chairman said.
About the company's strategic plan, Al Naimi continued: "The company's strategic plan relies on balanced and diversified investment of its capital in developing and income-generating projects as well as other investments."
"Mazaya Qatar will take into consideration the market's variables, especially within the real estate sector in Qatar and the region, when charting its short- and long-term strategy. Focus will be on projects and investments with strategic partners and shareholders who possess an added value for projects.
"This is in addition to focusing on lagging assets, whether finished or under construction and owning fully rented properties to ensure long-term cash flow."
Sheik Hamad bin Abdullah bin Khalifa Al Thani, Investment House Chairman and the Financial Consultant of Mazaya Qatar's IPO, said it was his pleasure to be a part of the work team assigned to undertake the company's IPO.
Mazaya Qatar was established with a capital of QR1bn, where 50 percent of the capital was paid through a private subscription from a strategic shareholders base, including Qatar Foundation for Education, Science and Community Development, Qatar Investment & Projects Development Holding Company (QIPCO Holding), Qatar Real Estate Investment Company, Al Sakhama Trading and Contracting Company, General Authority for Minors Affairs, others.
The Board of Directors has been formed from the prominent shareholders under the presidency of Qatar Foundation for Education, Science and Community Development represented by Rashid Fahad Al Naimi, Chairman and President of the Executive Committee, and Suhaim bin Abdullah bin Khalifa Al Thani, Vice-President.
It has also been agreed with Al Mazaya Holding on a five-year management contract, including developing the strategic plan, recruiting the executive management and participating in the management committee.
It is expected to enlist Mazaya Qatar's shares in Qatar Exchange and trade on its shares in market within few months as of the date of closing subscription according to the stock market's applicable regulations.
Non-Qataris may buy the company's shares through Qatar Exchange according to the applicable laws, rules and directives.
Mazaya Qatar's CEO Seraj Al Baker stressed the importance of investment in the Qatari market, indicating that Qatar is regarded as one of countries with the highest income per capita in the world.
This is in addition to the governmental support to encourage joint enterprises supported with attractive incentives.
Mazaya Qatar also signed a Memorandum of Understanding with Qatar Foundation for Education, Science and Community Development for the construction of 324 residential units for Qatar National Convention Centre's employees.
© The Peninsula 2010
