QLM Life and Medical Insurance Company, a subsidiary of Qatar Insurance Company, is tapping the market with a 60% initial public offering (IPO) at QR3.15 a piece to raise as much as QR659.4mn.
QLM, whose capital base is 350mn shares, is offering 60% or 210mn ordinary shares (of QR1 face value) to the public through the maiden offer, which will be on tap from December 10 to 23. The eligible investors include Qatari citizens and legal entities incorporated in Qatar.
In the first tranche, as much as 45% or 157.5mn shares are offered to individuals and corporates and in the second tranche, the remaining 15% or 52.5mn share are offered to anchor investors as General Retirement and Social Insurance Authority, Mwani Qatar and Doha Insurance Group.
The IPO is being offered at QR3.15, which includes a premium of QR2.14 and listing fees of QR0.01, corresponding to a total market capitalisation of QR1.1bn.
After the maiden offer, Qatar Insurance Group will retain 25% stake and the other 15% will be retained by other pre-IPO investors or founders.
The minimum subscription for individuals and corporates is 500 shares and maximum is 17.5mn shares. The lead receiving bank is QNB and the other receiving banks are Commercial Bank, Ahlibank Qatar, Doha Bank and Al Khaliji.
QLM, which is the largest provider of group medical insurance in Qatar based on the number of members and gross written premiums (GWP), is expected to be listed on the Qatar Stock Exchange by January 6, 2021.
QLM, whose solvency ratios have consistently been above the statutory requirements, has diverse portfolio of clients with no single customer representing more than 8% of the GWP.
The company has an extensive network of Healthcare providers in Qatar and abroad with more than 75,000 medical service providers spanning around 100 countries on six continents.
QLM's conversion into a public shareholding company is expected to be completed by December 29 and the first constituent general assembly is scheduled for December 30, 2020.
The last time the country witnessed a maiden offer was that of Baladna, whose IPO was oversubscribed. Prior to that, the IPO of Qamco also saw oversubscription.
At present, the QSE has 47 listed companies with 13 in the banks and financial services sector, 10 each in industrials and consumer goods, five in the insurance, four in the real estate, three in the transport and two in the telecom sector.