Qatar to list $ 12 bn firm with wealth fund’s assets



REUTERS

Published — Wednesday 20 February 2013

Last update 19 February 2013 11:21 pm

| نسخة PDF Print News | A A

DOHA: Qatar will create a new $ 12 billion investment firm, backed by blue-chip assets from its sovereign wealth fund, and list it on the local stock exchange, its main institutional backer said.
Qatar Holding — the investment arm of the Qatari sovereign fund — said the new firm will invest in assets around the world.
“You name it — shares, bonds, real estate, private equity. We will look at every sector in every country around the world,” Hussain Al-Abdullah, Qatar Holding’s vice-chairman, said at a news conference.
Qatar Holding, believed to have assets in excess of $ 100 billion, has been the most active of the region’s sovereign wealth funds in recent years, deploying the nation’s riches from plentiful natural gas to buy stakes in companies ranging from German sports car maker Porsche to British bank Barclays and Swiss lender Credit Suisse.
“Listing a company of this magnitude will stimulate more wealth distribution down the line. It will give Qataris a chance to be part of the country’s growth and will bring in sophisticated foreign investors once it’s listed,” said R. Seetharaman, chief executive of Doha Bank.
Qatar Holding will transfer $ 3 billion worth of assets into the new firm, with a similar amount raised in an initial public offering on the Qatar Exchange. A senior banker familiar with the matter said a further $ 6 billion will be raised at a later date.
Some bankers expressed doubt over whether the company could be launched as quickly as Qatar hopes.
“The announcement is pretty surprising, and it’s a brave move by Qatar. Most of their investments are either bespoke or in listed entities. There is a risk that it may open up their books significantly,” a senior banking source in Dubai said.
The IPO is open only to Qataris, but foreign investors will be able to buy in later.
Qatar Holding’s investments are widely seen as opportunistic, not following a specific strategy, as it has purchased a wide range of assets globally.
Qatar has also invested in other Arab states partly to boost its political clout.
The sovereign fund had a rate of return of 17 percent last year, Abdullah said.
“This is a global investment company to invest overseas, not in Qatar,” he said, adding it planned to guarantee a 5 percent dividend in its first year.
It was not immediately clear which assets would be transferred to the new firm, called Doha Global Investment Company.

The banker said Qatar Holding would spin off $ 3.5 billion worth of assets into the firm at a discount value of $3 billion.
Abdullah, who is also a board member of the Qatar Investment Authority, said the listing would take place in six to eight weeks on the Qatar Exchange, which seeks to rival Dubai as a financial hub.
“We don’t see an immediate rationale for a move like this, other than maybe sharing the wealth of the nation with citizens, but they have a lot of other companies in petroleum, steel, water treatment which should go (public) first,” the Dubai banking source said.
Credit Suisse, in which the sovereign wealth fund owns a 6.2 percent stake, is advising Qatar Holding.

What's happening around Saudi Arabia

RIYADH: In a fresh boost for relations between Saudi Arabia and Bangladesh, the Kingdom has decided to sign a memorandum of understanding on Foreign Office Consultations (FOC) with Dhaka. The Kingdom endorsed a proposal in this regard at a meeting be...
The Indonesian mission is hopeful detained Indonesian pilgrims will be free “very soon.” The mission is trying to persuade Saudi authorities of their nationals’ innocence.Eleven Indonesian pilgrims, who arrived in the holy city of Makkah to perform U...
JEDDAH: Police at King Khaled International Airport in Riyadh arrested a Saudi hacker after a government organization in Al-Leith in Makkah complained that he had hacked its website, according to an online newspaper.Col. Atti Al-Qurashi, spokesman fo...
JEDDAH: The special criminal court has sentenced a former military official to nine years in jail for joining Daesh and traveling to Syria to fight.A fine of SR5,000 was also slapped on him and he was barred from traveling abroad for nine years after...
JEDDAH: Saudi-Indian ties have reached a new high with the arrival of an Indian Air Force (IAF) flying contingent at the King Fahd Air Base in Taif.The mission, comprising more than 100 high-ranking IAF officers and airmen onboard Sukhoi MKI fighter...
RIYADH: A tripartite agreement among the National Handicraft Program, Prisons Department and the Technical and Vocational Training Corp. (TVTC) was recently signed in the presence of Prince Sultan bin Salman, president of the Saudi Commission for Tou...
JEDDAH: British authorities have opened investigations into the plane crash that led to the death of three members of the Binladin family.Investigations depend on the black box which registers the entire plane’s data, including speed, position of mob...
JAZAN: In a tragic accident, a speeding fuel truck caused four deaths and injuries to many people when it collided head on with five cars on the northern entrance of Abu Areesh area of Jazan, according to a website.The truck deviated from its path an...
JEDDAH: Municipal and Rural Affairs Minister Abdul Lateef Al-Asheikh has directed all the municipal authorities to closely scrutinize the election candidates’ credentials to thwart violation of rules.This is to ensure that the candidates meet all the...
Mohammed Mokammel Hossain, labor consul, Bangladesh Consulate, Jeddah * Which particular aspect of Saudi Arabia you like the most? Two Holy Mosques in Makkah and Madinah.* Can you tell us your favorite and oft-repeated Arabic word? Insha’Allah. * W...
RIYADH: Expatriates feel Saudi Arabia is a safer place than their home countries despite the fact that the Kingdom is leading a war against the Yemeni rebels and other terror organizations and a couple of suicide attacks in the recent past. Mahmoud T...
RIYADH: The maximum medical policy or contract for visitors is SR100,000, which covers expenses on emergency treatment, maternity charges, traffic accident injuries, dialysis and medical treatment in or outside the Kingdom. Making the above announce...
JEDDAH: The city and its surrounding areas sweltered on Monday, with the maximum temperature rising to 44 degree Celsius and relative humidity being recorded at 85 percent. The weather department has forecast a similar situation in Jeddah on Tuesday....
JEDDAH: A National Academy for Energy in Dammam and a private technical technical college, both exclusively for women, will be opened in the Easter Province.The General Organization of Technical and Vocational Training is in the process of implementi...
AL-AHSA: Masjid Joatha or Joatha Mosque is a center of attraction in Al-Ahsa with many visitors and tourists thronging the place of worship, which was believed to have been built in the seventh year of Hijri (629 AD).The mosque has been restored as p...

Stay Connected

Facebook