Qatar Petroleum (QP) is offloading 49% stake in Qatalum through an initial public offering (IPO), which is expected to hit the market by the end of this year.
The move follows the directives of the Amir His Highness Sheikh Tamim bin Hamad al-Thani to offer Qatari nationals shares in state-sponsored companies that enjoy safe investment environment and lucrative returns.
It is expected that the necessary procedures and approvals will be taken for listing on the Qatar Stock Exchange (QSE) during the last quarter of this year. QP will also establish a holding company that will acquire QP's stake in Qatalum.
This is an important step in implementing the Qatar National Vision 2030's goals in developing a diverse and competitive national economy capable of securing a high standard of living as part of the State's plan to increase the participation of the private sector in economic activity and supporting an investment climate capable of attracting capital; all of which are the most important economic objectives of the QNV 2030.
The last time the country witnessed a maiden offer from the QP’s stable was Mesaieed Petrochemical Holding Company, a holding entity for Q Chem, Q Chem I and Qatar Vinyl Company.
Qatalum, jointly-owned by the Norwegian company Hydro, is one of the most successful joint ventures of QP, with total revenue of QR5.1bn and a net profit of QR660mn in 2017.
The company produces about 645,000 tonnes per year of high quality aluminium for its customers in Asia, Europe and the US. Its facilities include a carbon plant, port and storage facilities and as well as a gas-fired power plant.
Qatalum’s cast house products are value-added extrusion ingots and foundry alloys that meet the stringent quality standards of its global customer base. Used in a variety of industries, including the automotive, construction, engineering and in the manufacturing of consumer goods, Qatalum’s aluminium reaches the entire global community. Qatalum uses the HAL275 system, an environmentally friendly, energy-efficient technology.
At present, the QSE has 45 listed companies with 13 in the banks and financial services sector, nine each in the industrials and the consumer goods, five in the insurance, four in the real estate, three in the transport and two in the telecom sector.
