+ A
A -
Satyendra Pathak
Doha
The QLM Life and Medical Insurance (QLM) initial public offering (IPO) to raise QR659.4 million is all set to open for subscription from December 10, the company announced on Wednesday.
A total of 210,000,000 offer shares will be available for subscription at QR3.15 per offer share during the subscription period that will conclude on December 23.
Addressing a press conference to announce the launch of the IPO, QLM Chairman Sheikh Saoud bin Khalid bin Hamad Al Thani said, “The IPO will give eligible investors like individual Qataris and companies registered with Qatar’s Ministry of Commerce and Industry the opportunity to invest in and share the future success of Qatar’s largest life and medical insurance company. It is an attractive investment opportunity and a real start to participate in the future success of the largest national life and medical insurance company in the region.”
The offer shares represent 60 percent of QLM’s shares and are being offered by Qatar Insurance Company (QIC) that will retain 25 percent of QLM’s share capital post-IPO.
The offering will be divided into two tranches. In the first tranche, 157,500,000 offer shares, equivalent to 45 percent of the company’s share capital, have been reserved for individual and corporate investors.
In the second tranche, the confirmed anchor investors like General Retirement and Social Insurance Authority, Doha Insurance Group and Qatar Ports Management Company (Mwani) will subscribe for a total of 52,500,000 shares, equivalent to 15 percent of the company’s share capital.
The selling shareholder, QIC, will retain 25 percent of QLM’s share as it is obligated to support the company after the IPO. The IPO proceeds, net of the offering and listing fees, will be retained by the selling shareholder.
“The company’s IPO comes as part of our responsibility to support the Qatari national economy and to achieve the goals of the 2030 Qatar National Vision. The offering is considered as our first step in achieving the company’s strategic goals to become the leading and largest national insurance company in medical and life insurance in the region,” the chairman said.
The share offer price of QR3.15 is the result of dividing the market value at the initial public offering by the number of the company’s 350,000,000 shares after being converted into a public joint-stock company. The offering price consists of the nominal value of QR1 and a premium of QR2.14 plus the costs of the offering and the listing fee of QR0.01 per share.
QLM’s implied total market capitalisation at IPO is QR1.099 billion.
“QLM is the largest provider of group medical insurance in Qatar based on the number of members and size of gross written premiums. We decided to obtain a public listing on the Qatar Stock Exchange through an IPO as the company has reached an operational maturity. The company is in excellent financial condition, enjoys strong profitability and high dividend-paying capacity,” Sheikh Saoud said.
“QLM has built a substantial brand value in Qatar and the wider GCC region. It is regarded as a trusted medical and life insurance provider for a wide variety of key clients. It has the largest network of medical service providers in Qatar,” the chairman said.
The first life and medical insurance company to be set up in Qatar, QLM has an extensive network of healthcare providers in the country and abroad with over 75,000 medical service providers spanning 103 countries on six continents •
Group CEO of Qatar Insurance Group Salem Khalaf Al Mannai, who also addressed the press conference, said that QLM has priced the offer shares at a premium to its book value for several reasons.
“QLM has enjoyed continuous profits since its establishment over nine years ago. As a result, QLM has accumulated sizeable undistributed profits, reserves and surpluses on its balance sheet over and above its share capital. IPO investors will have access to these resulting in an offer price with a premium over the historical book value,” Mannai said.
“The company has a track record of profitability. QLM has been among the leaders in profitability in the regional insurance industry. Given its strong market footprint, dominant market share, unrivalled IT and operational platforms and healthy capital position, the company is expected to continue to generate strong profits and distribute dividends to its shareholders in accordance with its dividend policy,” he said.
Citing global norms on IPO pricing, he said, “Pricing IPOs at premiums to historical book values for businesses with successful track records is a common practice in the international capital markets. Historically in Qatar, Industries Qatar and Mannai were listed at a premium to their respective book values. Comparing the conversion structure to the new company vehicle structure, the conversion structure applied in QLM’s IPO provides cost savings to investors as the offering and listing fees are lower.”
Asked about the timing for launching the IPO, Mannai said, “QLM’s major shareholder, QIC, has been evaluating the option of IPO for quite some time and we believe now is the appropriate time for QLM to go public from an operational and commercial standpoint. Global and local market sentiment has improved, with the QE Index currently trading at a positive year-to-date performance.”
“QIC and QLM’s other founders will retain a significant shareholding of 40 percent post-IPO to ensure the continued success of QLM,” he said.
It is proposed that allotment of offer shares and refunds of excess application amounts, if any, will occur by December 29, 2020. The company’s conversion into a Qatari public shareholding company and issuance of its amended commercial registration is expected to be completed on December 31 2020. The QLM shares are expected to be listed on the Qatar Stock Exchange in early January 2021 once final regulatory approvals are obtained.
Doha
The QLM Life and Medical Insurance (QLM) initial public offering (IPO) to raise QR659.4 million is all set to open for subscription from December 10, the company announced on Wednesday.
A total of 210,000,000 offer shares will be available for subscription at QR3.15 per offer share during the subscription period that will conclude on December 23.
Addressing a press conference to announce the launch of the IPO, QLM Chairman Sheikh Saoud bin Khalid bin Hamad Al Thani said, “The IPO will give eligible investors like individual Qataris and companies registered with Qatar’s Ministry of Commerce and Industry the opportunity to invest in and share the future success of Qatar’s largest life and medical insurance company. It is an attractive investment opportunity and a real start to participate in the future success of the largest national life and medical insurance company in the region.”
The offer shares represent 60 percent of QLM’s shares and are being offered by Qatar Insurance Company (QIC) that will retain 25 percent of QLM’s share capital post-IPO.
The offering will be divided into two tranches. In the first tranche, 157,500,000 offer shares, equivalent to 45 percent of the company’s share capital, have been reserved for individual and corporate investors.
In the second tranche, the confirmed anchor investors like General Retirement and Social Insurance Authority, Doha Insurance Group and Qatar Ports Management Company (Mwani) will subscribe for a total of 52,500,000 shares, equivalent to 15 percent of the company’s share capital.
The selling shareholder, QIC, will retain 25 percent of QLM’s share as it is obligated to support the company after the IPO. The IPO proceeds, net of the offering and listing fees, will be retained by the selling shareholder.
“The company’s IPO comes as part of our responsibility to support the Qatari national economy and to achieve the goals of the 2030 Qatar National Vision. The offering is considered as our first step in achieving the company’s strategic goals to become the leading and largest national insurance company in medical and life insurance in the region,” the chairman said.
The share offer price of QR3.15 is the result of dividing the market value at the initial public offering by the number of the company’s 350,000,000 shares after being converted into a public joint-stock company. The offering price consists of the nominal value of QR1 and a premium of QR2.14 plus the costs of the offering and the listing fee of QR0.01 per share.
QLM’s implied total market capitalisation at IPO is QR1.099 billion.
“QLM is the largest provider of group medical insurance in Qatar based on the number of members and size of gross written premiums. We decided to obtain a public listing on the Qatar Stock Exchange through an IPO as the company has reached an operational maturity. The company is in excellent financial condition, enjoys strong profitability and high dividend-paying capacity,” Sheikh Saoud said.
“QLM has built a substantial brand value in Qatar and the wider GCC region. It is regarded as a trusted medical and life insurance provider for a wide variety of key clients. It has the largest network of medical service providers in Qatar,” the chairman said.
The first life and medical insurance company to be set up in Qatar, QLM has an extensive network of healthcare providers in the country and abroad with over 75,000 medical service providers spanning 103 countries on six continents •
Group CEO of Qatar Insurance Group Salem Khalaf Al Mannai, who also addressed the press conference, said that QLM has priced the offer shares at a premium to its book value for several reasons.
“QLM has enjoyed continuous profits since its establishment over nine years ago. As a result, QLM has accumulated sizeable undistributed profits, reserves and surpluses on its balance sheet over and above its share capital. IPO investors will have access to these resulting in an offer price with a premium over the historical book value,” Mannai said.
“The company has a track record of profitability. QLM has been among the leaders in profitability in the regional insurance industry. Given its strong market footprint, dominant market share, unrivalled IT and operational platforms and healthy capital position, the company is expected to continue to generate strong profits and distribute dividends to its shareholders in accordance with its dividend policy,” he said.
Citing global norms on IPO pricing, he said, “Pricing IPOs at premiums to historical book values for businesses with successful track records is a common practice in the international capital markets. Historically in Qatar, Industries Qatar and Mannai were listed at a premium to their respective book values. Comparing the conversion structure to the new company vehicle structure, the conversion structure applied in QLM’s IPO provides cost savings to investors as the offering and listing fees are lower.”
Asked about the timing for launching the IPO, Mannai said, “QLM’s major shareholder, QIC, has been evaluating the option of IPO for quite some time and we believe now is the appropriate time for QLM to go public from an operational and commercial standpoint. Global and local market sentiment has improved, with the QE Index currently trading at a positive year-to-date performance.”
“QIC and QLM’s other founders will retain a significant shareholding of 40 percent post-IPO to ensure the continued success of QLM,” he said.
It is proposed that allotment of offer shares and refunds of excess application amounts, if any, will occur by December 29, 2020. The company’s conversion into a Qatari public shareholding company and issuance of its amended commercial registration is expected to be completed on December 31 2020. The QLM shares are expected to be listed on the Qatar Stock Exchange in early January 2021 once final regulatory approvals are obtained.
