QLM, which is awaiting Qatar to re-launch the national health insurance scheme to further consolidate its position in the domestic market, Wednesday made its debut in the Qatar Stock Exchange (QSE) with a big bang as its shares rose 24% and constituted more than 14% of the total trading volumes.
“The trading of QLM shares witnessed a strong turnout since the first (few) minutes of the listing,” QSE chief executive Rashid bin Ali al-Mansoori told reporters at a function to welcome its debut in the trading ring, thus bringing the total number of Qatari public shareholding companies to 48.
QLM marked the entry in the QSE trading ring with its chairman Sheikh Saoud bin Khalid bin Hamad al-Thani ringing the customary bell in the presence of Qatar Insurance Group chief executive Salem Khalaf al-Mannai, QSE chief Rashid bin Ali al-Mansoori, QSE listing director Abdulaziz al-Emadi and other dignitaries.
A total of 38.61mn shares of QLM valued at QR141.79mn changes hands across 3,708 transactions.
The shares of QLM were listed with the code QLMI in the insurance sector, which already has five other listed constituents. The opening price on the first day of trading was QR3.30 and the closing price was QR3.90, showing an increase of 23.8% on the first day of listing.
As usual, price floatation for QLM was permitted only for the first day of listing. Price fluctuation on the second day and thereafter will be permitted by 10% up/down as the case for all other listed companies.
“The QLM IPO represents the beginning of a new phase of development for our company. I am delighted at the positive response of the market on the first day of trading, which is a sign of investors’ trust in the company,” chief executive Fahad Mohamed al-Suwaidi said.
The company found its way into the QSE after successfully concluding its initial public offering through which it had offered 210mn ordinary shares at QR3.15 a piece (including QR2.14 premium), to garner as much as QR659.4mn.
Highlighting that domestically it has 50% market share; QLM chief executive al-Suwaidi said it is awaiting the re-launch of the national health insurance scheme, which was earlier known as ‘Seha’.
“Our company has all the fundamentals to (take the) lead (for the national health insurance),” said the top official of QLM, which enjoys dominant market share in Qatar for the group medical and group life lines of businesses and is also a leading insurer in the GCC region.
QLM, whose solvency ratios have consistently been above the statutory requirements and has diverse portfolio of clients with no single customer representing more than 8% of the gross written premium, will pay dividend to investors after it declares the results for the first quarter of 2021, he said.
QLM was established on April 30, 2018 with an authorised capital of QR350mn, which is 100% paid in full. The company’s main objective is to carry out life and medical insurance and reinsurance activities under its licence issued by the Qatar Central Bank, and any additional insurance activities, which may be licensed to the company in the future.