Baladna QPSC is pleased to announce its Initial Public Offering of 1,425,750,000 new shares on the Qatar Stock Exchange, representing 75% of the share capital of the company. There is no sale of any existing shares in the IPO.
The offering provides eligible investors with the opportunity to invest in Baladna Food Industries WLL (BFI) through Baladna QPSC. Eligible investors are individual Qatari investors and 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, regardless of nationality.
BFI is Qatar’s largest dairy and beverage company, and since its incorporation in the State of Qatar in 2014, the company’s herd has grown to approximately 18,000 cows, housed in two farms spread over a total area of more than 2 million square metres. In its barns, plants, and factories, BFI implements international best practice in veterinary care, hygiene and food safety to maintain the highest quality of fresh produce, so that in 2017, mid-blockade, BFI proactively made Qatar self-sufficient in fresh milk. In April 2019, the company began selling non-dairy products like juices. Baladna has also commenced limited exports to neighbouring countries.
BFI’s resources include its own plastic factory and on-site packaging/bottling plants, a water treatment facility to meet farm operation needs, a feed storage facility with a six-month reserve capacity and state-of-the-art facilities including the most advanced milking parlour in the region.
Details on the Offering: The offer shares are being offered at QAR1.01 per offer share which represents the nominal value of QAR1 per offer share plus offering and listing expenses of QAR0.01 per offer share.
The IPO opens for subscription on 27 October 2019 and closes 7 November 2019. It is proposed that allotment of offer shares and refunds of excess application amounts, if any, will occur by 21 November 2019. The company is expected to be incorporated on 26 November 2019, with its shares expected to be listed on the Qatar Stock Exchange on 11 December 2019.
It should also be noted that on 10 October 2019, Sheikh Professor Dr Ali Al-Qaradaghi and Sheikh Dr Walid Bin Hadi issued a fatwa permitting subscription in the shares of the company based on its commitment to the rules of Islamic Sharia and the formation of a Shariah Committee at the Company.
The company will have a total share capital of QAR1,901,000,000 divided into 1,900,999,999 ordinary shares consisting of the offer shares, the founders’ shares and the special share.
The offer shares, constituting 75% of the share capital of the company, will be offered to eligible investors as follows:
Strategic Investors: a total of 437,230,000 of offer shares, equivalent to 23% of the entire share capital of the company, are being offered and fully allocated to the following strategic investors including General Retirement and Social Insurance Authority (GRSIA); Hassad Food Company QPSC, ; Al Meera Consumer Goods QPSC, ; Qatar Ports Management Company (Mwani Qatar); and Widam Food Company QPSC.
Individual and Corporate Investors: a total of 988,520,000 Shares, equivalent to 52% of the issued share capital of the company, are being offered to eligible individual and corporate investors as follows: One (1) special share for the Government of Qatar represented by the Ministry of Commerce and Industry and 988,519,999 ordinary shares offered to individual and corporate investors.
The maximum application by an Individual and Corporate Investor is set at 475,250,000 offer shares which is the equivalent to 25% of the shares.
Approval by QFMA of the Listing of Shares on the Qatar Exchange is expected to take place around 4 December 2019 and trading of the Shares to start on 11 December 2019. Following the offering and allotment of subscribed shares to investors, non-Qataris (individuals and legal entities) will be able to own up to 49% of the shares of the company.
For more information about Baladna please visit their website.