DOHA Jan 2 Qatari construction firm Investment
Holding Group (IHG) will launch an initial public offer of its
shares next week in a boost for the country's stock market,
which has seen only two new listings since 2010.
The family-owned contracting and trading business will offer
49.8 million shares, or 60 percent of its capital, at a price of
10.1 riyals per share, the company said in a statement late on
Sunday. That would make the value of the offer about 503 million
riyals ($138 million).
IHG, a holding company which through its subsidiaries
provides contracting, shipping, real estate and education
services according to its website, will be the first family
business in Qatar to list its shares on the exchange via an IPO,
The shares will be offered through Commercial Bank
between Jan. 8 and 22 to Qatari citizens and companies.
While state firms developed the energy sector in Qatar and
other Gulf Arab countries, family-run businesses built much of
the rest of the regional economy. They generate more than 80
percent of non-oil gross domestic product in the six-nation Gulf
Cooperation Council, consultants PwC estimated.
Families have often been reluctant to take their companies
public for fear of losing control and because of concern about
how the Gulf's illiquid markets would value their shares.
But pressure to go public has been increasing; regulators
want family businesses to list in order to deepen the markets,
and listings can help the firms cope with increasing competition
and the challenge of raising money in an era of low oil prices.
Ghanim al-Hodaifi, chairman of IHG's board of directors,
said an IPO was an opportunity for Qatari family businesses to
"to improve the management of share capital" and expand their
(Reporting by Tom Finn; Editing by Andrew Torchia)