Shareholders of Mesaieed Petrochemical Holding Company (MPHC), whose IPO is currently on sale, will be soon eligible for profit share for four months since the firm was established in September 2013, HE the Minister of Finance, Ali Sherif al-Emadi said yesterday.
"The profits are being distributed under instructions from HH the Emir. The profits will be distributed after the company's results are announced, which are expected by March or April," al-Emadi told reporters here yesterday.
He said MPHC did well in 2013. In 2012 the company earned net profit of around QR1.6bn.
"Last year's profits are greater than this. The profit details will be announced after completing auditing and other regulatory processes," al-Emadi said.
MPHC, a wholly-owned subsidiary of Qatar Petroleum (QP) and an umbrella entity for Q-Chem I, Q-Chem II and Qatar Vinyl Company (QVC), is offering 323.19mn ordinary shares (26% stake) at QR10.2 a piece (including QR0.2 listing fees).
The IPO is primarily reserved for Qatari private individuals with minimum subscription at 50 shares and a maximum of 1mn. Although Qatari private institutions or corporations are excluded, Qatar Foundation and the General Retirement and Social Insurance Authority have been allowed to partake in the subscription.
The government will distribute 750 shares of MPHC as a gift to each disadvantaged citizen, including those receiving social security benefits and people with special needs.
Al-Emadi urged Qataris to invest in MPHC, which holds a lot of promise.
To encourage Qataris to hold MPHC shares for longer term, "incentive" shares will be given to nationals, who subscribes to the IPO, after five and 10 years (2018 and 2023 respectively), provided they retain at least 50% of their shares purchased in the offering at all times.
Based on HH the Emir's directive, the company has been revaluated. Originally, a group of experts evaluated MPHC at QR16.7bn. Now it has been revaluated at QR12bn.
Al-Emadi said the Ministry of Finance, in association with the Qatar Central Bank, has ensured that local banks will provide financial assistance to Qataris subscribing to MPHC initial public offer. "The banks have done a good job; they have offered financial assistance of 100%," the minister said.
Al-Emadi said applicants (who are legally under aged) will not directly get such financial assistance. But they can claim bank finance either through parents or legal guardians.
Asked whether MPHC initial offer was in compliance with Islamic Shariah, the minister said, "It is. Opinion by three eminent Islamic scholars has been provided in the company prospectus."
Al-Emadi said, "It is too early to assess the performance of the IPO sale" because it started only on December 31.
The maiden offer, which is part of QP's 10-year investment and savings programme, is scheduled to close for subscription on January 21.
On whether the IPO sale would be extended, he said, "There is absolutely no need for that. The IPO schedule provides lot of flexibility to Qatari applicants. Also, local banks have eased the process by offering financial assistance."
MPHC is expected to be listed on the Qatar Exchange by February.
© Gulf Times 2014
