DOHA: Dilala, a new brokerage, investment and investment consultancy venture being launched with nine promoters, will float an initial public offering (IPO) tomorrow.
The shares of the company are expected to be listed at the Doha Securities Market (DSM) within two months after the closure of the IPO in a fortnight.
However, the shares of the new company will not be open for trading to non-Qataris. "We expect foreigners to be permitted to buy and sell Dilala shares at the DSM sooner than later," said a senior official from the company's organising committee.
The IPO, will be open for subscription for nationals for two weeks and priced at QR10. Two per cent of this amount (the IPO price of each share) will be levied as service charges.
The size of the issue will be QR146m, Hamad bin Abdullah Al Attiyah, director-general of General Retirement and Pension Authority (GRPA), told the press on Thursday.
Dilala will be a holding company and its full name is Dilala Brokerage and Investment Holding Company. It will own three companies. One will deal in Islamic brokerage services, while the other will handle conventional brokerage.
The third company will handle portfolio management for clients, whereas Dilala itself will provide investment consultancy services.
Hamad bin Abdullah is chairman of the organising committee of Dilala.
Hamad bin Abdullah told a press briefing that minimum subscription will be for 100 shares, while maximum allotment will be for 10,000 shares.
Refunds for un-allotted shares will be made within two weeks from the date of closure of the IPO.
Samer Jaghoub, from Doha office of Deloitte &Touche, Dr (Sheikh) Hamad Nasser Al Thani, general manager of Qatar Industrial Development Bank (QIDB) and Mousa Subaihi, administrative coordinator, at the GRPA.
The nine equity holders with a stake of three per cent each are GRPA, Qatar Foundation, Qatar National Bank, Health and Education Fund, Amwal, Doha Bank, International Bank of Qatar, Commercialbank and Al Ahli Bank.
QNB has been named lead manager of the issue while subscriptions will be handled by other banks as well, including Commercial Bank, Doha Bank,
Al Ahli Bank, International Bank of Qatar, Arab Bank and HSBC.
Hamad bin Abdullah said that a feasibility study conducted by Deloitte & Touche revealed that Dilala would be able to make profits from the first year (2006) itself.
Profits estimated for 2006 are at 1212 per cent, the figure reaching up to 29.28 per cent by 2015 while dividend income is expected to rise from five per cent in first year to an impressive 37 per cent in 10 years.
Deloitte will scrutinise subscription forms and make sure that allotments are made in accordance with rules and after ensuring credentials of applicants.
© The Peninsula 2005
