Islamic financial institutions show support for Qatar’s petroleum sector via MPHC’s IPO - IFN

Islamic financial institutions show support for Qatar’s petroleum sector via MPHC’s IPO

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QATAR: In light of a directive issued by the state’s ruler to encourage Qataris to invest in the country’s future, three Islamic banks will provide financing schemes to those who intends to subscribe to the IPO of Mesaieed Petrochemical Holding Company (MPHC). Demonstrating their support and confidence in the state’s oil and gas industry, Qatar Islamic Bank (QIB), Qatar International Islamic Bank (QIIB) and Al Khaliji Commercial Bank (Al Khaliji) have all offered a 100% financing scheme for the MPHC IPO. The financing schemes, which are offered at competitive rates, are only available to locals as the IPO is only open within the country to individual Qatari nationals and certain selected Qatari institutions. Other Shariah compliant financial institutions involved in the IPO include, Barwa Bank, Mashreq Bank and Masraf Al Rayan. MPHC is a wholly-owned subsidiary of Qatar Petroleum, which is in turn owned by the Qatari government. The integrated regional producer and exporter of petrochemicals plans to raise QAR3.23 billion (US$886.42 million) by offering 323.19 million ordinary shares at QAR10.2 (US$2.79) per share to the public, which represents a 26% stake in the company. The minimum subscription for an individual investor is 50 shares, and the maximum is 1 million shares. MPHC’s IPO auction will close on the 21st January. The company’s listing on the Qatar Exchange is expected to commence in February.