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Posted on January 05, 2014

HE the Finance Minister of Ali Shareef Al Emadi has announced that, under the directives of HH the Emir Sheikh Tamim Bin Hamad Al Thani, the shareholders of the Mesaieed Petrochemical Holding Company (MPHC) will get a percentage of the MPHC profits in the last four months of 2013, despite the fact that the subscription in the company's shares began on December 31, 2013.

Speaking at a press conference held today to give clarifications on the subscription process in this new company, HE Al Emadi noted that the directives issued by HH the Emir Sheikh Tamim bin Hamad al-Thani to the government stipulated that we offer the share at a reasonable price for Qatari nationals. This, he said, encouraged us to reduce more than QR4 billion of the company's value for the benefit of citizens in the subscription process. The MPHC's value is estimated at QR 12 billion, while its real value is QR16 billion, HE Al Emadi said.

The MPHC's real value exceeded QR 16 billion since it had achieved QR1.6 billion in 2012, he said, pointing out that the privatization of MPHC was carried out after neutral investors had estimated it at more than QR 16.7 billion.

Apart from reducing the value of the company, there are directives from the government to work out a long-term mechanism to encourage Qatari nationals, he said, adding that the government has developed a future saving mechanism beyond 5 or 10 years. If we assessed the concessions given by the government to Qatari citizens we will find that the amount exceeds QR 6 billion, and that the government based on the directives of HH the Emir had reduced the value of the company for the benefit of the Qatari citizens, he said.

Al Emadi stressed that the MPHC's fiscal status in 2013 was good and its profit exceeded that of 2012, noting that in accordance with the directives of the HH the Emir the government will spare no efforts in helping Qatari citizens in the subscription process. The company, he said, will announce during next March or April the distribution of subscription profits for the last four months in 2013. So, the shareholder who subscribes today will receive a dividend for the months of September, October, November and December, he added.

At this press conference today, he said, we are discussing one of the most important IPOs in Qatar and it is necessary to complete the discussion and shed light on the status of the company and its financial results as well as what has been done with regard to the privatization of this company. 

On subscribers figures, HE the Finance Minister said he expects that there will be a very good turnout, especially as the company's shares are ideal for long-term savings to benefit Qatari citizens, who he encouraged to seize the opportunity of the company's IPO He pointed out that the Finance Ministry had asked banks to facilitate the needs of some citizens to finance, saying that the banks have done a good job in order to facilitate these procedures, as funding ratio of some banks had reached the 100 percent level.

HE Al Emadi stated that the ongoing coordination between the Ministry of Finance and the Qatar Central Bank as well as banks to overcome obstacles facing Qatari subscribers' participation in this company.
Speaking about the conflicting views about Mesaieed IPO, he explained that there was clarity from the outset and that investors can find information on the prospectus, which includes Fatwa of three sheikhs who permitted the company subscription.

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With regards to the mechanism of allocation of shares, HE Ali Al Emadi said that it was the first time a new method is used in the allocation process, where the allocation will be according to fifty shares or above, adding that the whole policy that was developed to conduct Mesaieed IPO targets ordinary citizens and the middle class,but will not allow big investors to dominate the IPO.

On social security recipients and people with special needs and their proportion in the IPO process, HE the Minister pointed to the directives of HH the Emir Sheikh Tamim Bin Hamad Al Thani with regards to social security recipients and people with special needs, saying that they will have the same figures or more, explaining that a committee with members from the Ministry of Finance and the Ministry of Social Affairs and Qatar Petroleum was formed to develop the appropriate mechanism to record this for them.

HE the Minister added that these groups can subscribe in Mesaieed Holding out of the 750 shares allocated for them as per the directives of HH the Emir, adding that the ministry is ready to cooperate and do everything possible to remove obstacles facing subscribers.

Regarding Qatar Foundation and General Retirement & Pension Authority stakes in the IPO, HE the Minister of Finance revealed that their share would be 2.45 percent. HE the Minister of Finance said that HH the Emir Sheikh Tamim Bin Hamad Al Thani has directed the government to ensure that Qatari citizens get maximum benefit out of the MPHC IPO.

He said that the share price will be floated according to Qatar Exchange's procedures, adding that floating price is compatible with savings policy and long-term investment encouraged by the government in this subscription.

He urged the citizens to keep shares as a long-term investment, saying that the government decided that investors retain 50 percent of the shares for 5 or 10 years as a catalyst to maximize benefit for them. He added the market is open for the shareholders who want to sell some of their shares, but the government is encouraging them to keep shares as long as possible.

HE stated that the people with special needs, who have 750 shares allocation, will not be allowed to sell them because the purpose behind this allocation is to provide them with a decent life. HE Al Emadi praised cooperation and good performance shown by banks in funding the subscription, pointing to the continuous follow-up by the Qatar Central Bank for the financing process. He ruled out that banks are exploiting citizens in taking unrealistic profits, stressing that the Ministry of Finance and Qatar Central Bank will not let something like this happens.