QLM Life & Medical Insurance Company QPSC (under conversion from a limited liability company into a Qatar Public Shareholding Company) (“QLM” or the “Company”), the leading life and medical insurance company in Qatar, is pleased to announce its Initial Public Offering (“IPO” or the “Offering”) of 210,000,000 shares (the “Offer Shares”), representing 60% of the shares of the Company. A prospectus in relation to the IPO has been published and can be obtained on the Company’s website at (www.qlm.com.qa).
The IPO provides eligible investors with the opportunity to invest in Qatar’s largest life and medical insurance company and a regional leader in the sector. Eligible investors in the IPO include individual Qatari investors in addition to corporate investors, defined as legal entities incorporated in the State of Qatar holding a commercial registration certificate issued by the Qatari Ministry of Commerce and Industry.
The sole selling shareholder, QIC, in addition to QLM’s other seven founders, intend to jointly retain 40% of QLM’s share capital following the IPO, reflecting their continued support and commitment towards QLM. Furthermore, a number of prominent anchor investors have demonstrated their confidence in the Company and its value proposition by committing to subscribe to 15% of QLM’s total share capital during the IPO.
Commenting on the launch of the IPO, Mr. Salem Khalaf Al Mannai, Group CEO of Qatar Insurance Group stated; “Over the years, QLM has gained a major market share in the Life & Medical insurance business and has become one of the leading life and health insurers in the State of Qatar and the wider GCC region. This Initial Public Offering is another milestone on the path towards achieving our growth trajectory.”
QLM was the first life and medical insurance company to be set up in Qatar, and is currently the country’s leading provider of group life and medical insurance with a dominant market share. Since its inception in 2011, QLM has demonstrated consistent profitability and has provided best-in-class group medical and life insurance products and services. QLM works with the region’s most comprehensive medical providers’ network which includes over 75,000 healthcare centers spanning 100 countries over six continents.
QLM believes that its business is characterized by the competitive strengths highlighted below and that these competitive strengths will enable the Company to successfully implement its strategy of maximizing shareholder value by capitalizing on its position in the insurance industry:
A total of 210,000,000 Offer Shares are being offered at QAR 3.15 per Offer Share (the “Offer Price”), including the Offering and Listing Fee of QAR 0.01 per Offer Share. The Offer Shares represent 60% of QLM’s shares, and are being offered by the sole selling shareholder, QIC, who will retain 25% of QLM’s share capital post-IPO. The IPO proceeds, net of the offering and listing fees, will be retained by the selling shareholder. To the extent that the actual Offering and Listing Expenses incurred exceed the total Offering and Listing Fees collected, the Selling Shareholder shall be responsible for the payment of the Offering and Listing Expenses.
The share capital structure of the Company will be adjusted from its pre-conversion structure (35,000,000 shares of nominal par value QAR 10 each) to its post-conversion structure (350,000,000 shares of nominal par value QAR 1 each). The total nominal share capital of the Company will remain QAR 350,000,000. During this process, the Founders will maintain their respective percentages of ownership in the Company. QLM’s market capitalization at IPO is QAR 1,099,000,000, which divided by the post-conversion number of Offer Shares results in an Offer Price of QAR 3.15 per Offer Share, consisting of the nominal value of QAR 1, a premium of QAR 2.14 and the Offering and Listing Fees of QAR 0.01.
The IPO subscription period opens on Thursday, 10 December 2020 and ends on Wednesday, 23 December 2020. It is proposed that allotment of Offer Shares and refunds of excess application amounts, if any, will occur by 29 December 2020. The Company’s conversion into a Qatari public shareholding company and issuance of its amended commercial registration is expected to be completed on 31 December 2020, with its shares expected to be listed on the Qatar Stock Exchange in early January 2021 once final regulatory approvals are obtained.
The Offering will be divided into two offering tranches. In the first tranche, 157,500,000 Offer Shares, equivalent to 45% of the Company’s share capital, have been reserved for Individual and Corporate Investors.
In the second tranche, the confirmed Anchor Investors, being the General Retirement and Social Insurance Authority (“GRSIA”), Doha Insurance Group QPSC, and Qatar Ports Management Company (“Mwani”) will subscribe for a total of 52,500,000 shares, equivalent to 15% of the Company’s share capital.
In the event that at the end of the Subscription Period a number of Offer Shares remain available, the remaining Offer Shares may be allocated to Eligible Investors at the direction of the Board in its absolute discretion. It is proposed that allotment of Offer Shares and refunds of excess application amounts, if any, will occur by 29 December 2020.
Eligible investors may apply for a number of Offer Shares between the minimum of 500 Offer Shares and the maximum of 17,500,000 Offer Shares (equivalent to 5% of the Company’s entire share capital). Investors can obtain copies of the IPO Prospectus from the Company’s website (www.qlm.com.qa) and can obtain information on the subscription process by contacting one of the five participating receiving banks, which are Qatar National Bank, CBQ, Ahli Bank, Doha Bank and Al Khalij Commercial Bank.
It is anticipated that Admission will occur on or around 6 January 2021 after obtaining the approval of the Qatar Financial Markets Authority and the Qatar Exchange (QE). After the Closing Date and following commencement of trading in the Shares on the QE, all eligible Investors will be allowed to purchase shares on the secondary market of the QE in accordance with the applicable rules and law of the QE. The Shares may be freely traded and transferred in accordance with the rules and regulations of the QE and in compliance with applicable laws in Qatar.
| Subscription Period opens | Thursday, 10 December 2020 |
| Subscription Period ends | Wednesday, 23 December 2020 |
| Allotment of Offer Shares and refund of excess application amounts, if any | Tuesday, 29 December 2020 |
| Constitutive General Assembly | Wednesday, 30 December 2020 |
| Issuance of the updated commercial registration certificate of the Company, reflecting conversion into a Q.P.S.C. | Thursday, 31 December 2020 |
| Expected Listing on the QE | Wednesday, 6 January 2021 |
Before investing, Individual or Corporate Investors must consult the Prospectus issued in association with this IPO. The Prospectus can be obtained from the Company’s website at (www.qlm.com.qa).
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