Middle-east Arab News Opinion | Asharq Al-awsat

Investors Offer $2.5 Billion in Qatar Petroleum IPO - ASHARQ AL-AWSAT English Archive
Select Page

DUBAI (Reuters) – Investors offered 8.9 billion riyals ($2.45 billion), five times more than state-owned Qatar Petroleum was looking to raise in the initial public offering of a new holding company grouping three of its services firms.

Gulf International Services offered stock at 21 riyals per share, plus a 0.6-riyal offering cost, it said in a statement received late on Saturday.

QP said in February it would sell a 65.8 percent stake in the firm and retain 30 percent. Another 4.2 percent stake will be reserved for “selected institutions.”

An official had told Reuters the company aimed to raise 1.72 billion riyals. The deadline for refunding the additional subscription money is March 26, the statement said.

Gulf International Services is a holding company, which includes Gulf Helicopter Co, Gulf Drilling Co and Al-Koot Insurance and Reinsurance Co.

HSBC Holdings Plc advised on the sale.

Gulf International plans to list on the Doha Securities Market during the second quarter provided it receives the necessary regulatory approvals, a Qatar Petroleum official, who declined to be identified told Reuters.

Only Qatar Oman Investment Co and Al-Khaliji Bank sold shares in Qatari IPOs last year, when investor appetite for Gulf Arab stocks picked up following a stock market crash in 2006 that saw the Doha Securities Market shed 35 percent.

Qatar could see as many as three companies selling shares in IPOs this year, Youssef Kamal, the Gulf Arab state’s finance minister, told Reuters on March 16.

The index .QSI closed almost 34 percent up in 2007.

Gulf Arab investors plan to sell about $10 billion of stock to the public during the next three years, more than previously forecast, as governments relax the rules, Abu Dhabi-based private equity firm Gulf Capital said in January.

More than 40 firms have appointed advisers to arrange sales, and another 41 have said they plan initial public offerings through to the end of 2010, Gulf Capital said in a report.

The economy of OPEC member Qatar — the world’s largest exporter of liquefied natural gas and home to the world’s third-biggest natural gas reserves — is booming on windfall oil revenue as prices have risen more than five-fold since 2002.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

More Posts

Follow Me:
FacebookGoogle PlusYouTube