Qatar’s stock market is set to welcome its first initial public offering (IPO) in nearly three years in a test of new rules introduced by Doha, expected to compete with more active exchanges in the region.
IT services company Meeza could raise up to 911 million riyals ($249 million) when it launches its IPO on January 15 through the sale of 50% of its shares under a new bookbuilding process in Doha. Appetite and pricing.
Qatar, the world’s top LNG exporter and recent host of the 2022 FIFA World Cup, is increasing its focus on diversifying its economy away from gas.
That strategy includes launching more listings by opening up its equity market to a wider investor base.
“Now that the World Cup has been successfully organised, we can see the focus shifting to other diverse areas,” said Osama Ali, HSBC’s head of global banking in Qatar.
Gas-rich Qatar has spent at least $229 billion on infrastructure in the 11 years since winning the bid to host the World Cup, in an effort to emulate the dramatic transformation of Gulf rivals Dubai and Abu Dhabi.
The absence of listing has increased the demand for new floatation and companies have realized this and are lining up. Ali said barring volatility from global markets, activity in Qatar is expected to pick up in the first half of the year, with six companies likely to go public through IPOs in the next 18 months.