• Home
• /
• Markets

Qatar’s first IPO since 2010 fully subscribed

Mesaieed Petrochemical Holding Co, a unit of state-owned Qatar Petroleum, raised QR3.2 billion ($880 million) in the Qatari stock market’s first initial public offer (IPO) of shares since 2010, the parent firm said on Wednesday.

All 323.19 million shares offered, amounting to 25.725 per cent of Mesaieed, were sold and demand was strong, Qatar Petroleum said, adding that the stock would start trading on the market next month.

The three-week offer, which ended on Tuesday, was open only to Qatari nationals. Qatar Petroleum did not give details of who bought the shares, saying that would be announced by January 30.

The global financial crisis froze IPOs in Qatar but the government wants to revive them as a way to develop the country, which is the world’s top exporter of liquefied natural gas, into a regional financial hub. It also aims to use IPOs to spread more energy wealth among its citizens.

Qatar plans to conduct IPOs worth QR50 billion in its stock market over the next 10 years, the industry minister said last month. The country has a population of about 2.1 million, roughly 250,000 of whom are local citizens.

Mesaieed holds stakes in ventures that manufacture polyethylene, caustic soda and other chemical products. Its partners in the ventures include the US company Chevron Phillips Chemical Co. The stakes held by Mesaieed generated combined revenue of QR4.3 billion and net profit of QR1.6 billion in 2012, officials said.