The initial public offering (IPO) of Meeza QSTP, a leading provider of end-to-end IT services in Qatar, will hit the market on June 6, seeking to raise QR438.7mn from retail investors and institutions other than qualified investors.
As much as 62.59% of the offer shares (constituting 203.1mn) are currently being offered to eligible investors, including Qatari citizens and legal entities incorporated in Qatar, at an offer price of QR2.17 (including the listing fees of QR0.01 a share).
The IPO of Meeza, whose net income saw a compound annual growth rate of 22.4% over the last three years to reach QR52.1mn in 2022 (15% net income margin), will be on tap until June 19.
The minimum order by individual and corporate investors has been set at 500 offer shares and the maximum order by individual and corporate investors at 32.45mn offer shares.
The total offering size of the maiden offer is QR700.9mn, which includes 121.39mn shares (or 37.41%) allotted to qualified investors at QR2.17 through the country's first ever book building process for an IPO.
The share capital of Meeza is QR648.98mn, divided into 648.98mn shares of QR1 each. A half of it (50%) - equivalent to 324.49mn shares - are being offered at an offer price of QR2.17, making the total size of the offering QR700.9mn (excluding the offering costs of QR0.01 per share).
The offer price of the shares comprising the share capital was determined by qualified investors in Qatar through the first book building process ever pursued to price an IPO on the Qatar Stock Exchange (QSE).
The company offered the offer shares to a set of qualified investors during the book building subscription period that ran from January 15, 2023 to March 6, 2023.
Meeza’s founders - Qatar Foundation for Education, Science and Community Development (QF) and Ooredoo - are strongly committed to its future success and will be retaining at least 50% shareholding in the company post-IPO.
Post-IPO, QF is expected to retain at least 40%, Ooredoo 10%, qualified investors 18.71%, and individual and corporate investors up to 31.29%.
The company has consistently recorded strong and stable growth over the last three years with revenue growing at an 11.3% CAGR between 2020 and 2022, coupled with an EBITDA (earnings before interest taxes depreciation and amortisation) CAGR of 10.9% over the same period, driven by a significant growth in demand for data centre capacity and ancillary IT services.
Seven qualified investors had subscribed to 121.39mn shares and the order book was closed at a final offer price of QR2.17 per share.
The final pricing of the shares outside the latest price range is a testament of the effectiveness of the book building mechanism to transparently price the IPO based on supply and demand, considering market conditions and feedback received from qualified investors during the book building subscription period.
The company will submit an application to the Qatar Financial Market Authority and the QSE to list the Shares on the QSE in accordance with the listing requirements of the regulator and the procedural rules of the QSE. The listing is expected to be in July 2023.