05 January 2017
Investment Holding Group (IHG), the first Qatari family business that will launch an initial public offering (IPO) next week, is planning expansion, especially in infrastructure as it is confident on the economic prospects of Qatar.
“We have several plans for expansion and development. Most of our plans for the next two to three years will be concentrated on infrastructure,” IHG chief executive Wael M Shtayyeh told reporters here, ahead of its IPO that will hit the market from January 8 until January 22.
Several expansion plans would be tabled before the general assembly, he said, without disclosing the details regarding the quantum of investments required by IHG, whose specialised engineering and infrastructure businesses generated greater returns than the other sectors.
IHG is the direct or indirect legal owner of Construction Development Contracting and Trading (51%); Debbas Enterprise Qatar (51%); Electro Mechanical Engineering Company (68.5%); Consolidated Engineering Systems Company (60.4%); Watermaster Qatar (63.3%); Trelco Company (100%); Consolidated Supplies Company (75.5%); and Trelco Building Materials Company (85%).
IHG, a diversified company, is offering 49.8mn shares at QR10.1 a piece to collectively raise QR490.8mn, representing 60% of the group’s capital which is QR830mn, while the remaining 40% would be retained by its chairman Ghanim Sultan al-Hodaifi al-Kuwari.
Of the 60% public offering, a half (30% or 24.9mn shares) has been earmarked for individual and institutional investors such as Qatari nationals, Qatari companies registered in Qatar or legal entities incorporated in Qatar and listed on the Qatar Stock Exchange. The minimum subscription by an individual or institutional investor has been set at 500 shares; any application exceeding the minimum shall be in groups of  offer shares.
Another 30% shares are allotted for the cornerstone investors, who shall be Qatari companies registered in Qatar or the legal entities incorporated in Qatar and listed on the QSE or government entities that apply for subscription to a minimum of 1mn shares. The minimum application by a ‘cornerstone’ investor is set at 1mn shares; with an option of acquiring additional tranches of 100,000 shares over the minimum level.
“All preparations related to receiving subscription offers are complete” and they would be received through various branches of Commercial Bank, Shtayyeh said.
Expecting oversubscription for its IPO, he said, “We believe in the Qatari market based on the development plans of the government which will be increased in 2017.”
“The Qatari economy will be growing in real terms and therefore our activities that has been successful over the years will be sustained,” he said, adding the domestic economy is robust and strong and the government has plans to sustain this through mammoth projects in rail, road and industries, especially considering that global oil prices have now strengthened on the back of production cut by the oil producers.
“Qatari economy will be comfortable with oil price between $50 and $60 a barrel and it will be enough to sustain the economy and we are confident about the Qatari economy and it is the reason for us to go public,” the top official said.