By Tamara Walid, Bloomberg
QInvest, the investment bank that’s 49 percent owned by Qatar Islamic Bank, is working to conclude two “reasonable size” mandates for initial public offerings by local companies this year, its chief executive officer said.
“We are looking to conclude one transaction in the second- quarter of 2011, and the other in the second half,” Shahzad Shahbaz said in a telephone interview today. The size of the IPOs is yet to be determined, he said.
QInvest, Qatar’s largest investment bank, is still planning to offer its shares to the public as it pursues expansion in the Middle East, Shahbaz said. “We are looking at early 2012, in the first half, depending on market conditions.” he said. “If there was a good story there would be appetite in the market.”
IPOs in Qatar, the world’s largest exporter of natural gas, generated 502.5 million riyals ($138 million) in 2010 in one offering compared with 3.38 billion riyals in 2009 also in a single share sale, data compiled by Bloomberg show.
The Shariah-compliant investment bank is eyeing “organic” growth in the Middle East, focusing on Saudi Arabia, Turkey and the United Arab Emirates, Shahbaz said.
The company has obtained a provisional license from the
Saudi Capital Market Authority to set up business in the
kingdom, and is awaiting final authorization to start
operations. “We hope to be up and running as soon as
possible, subject to the regulator giving us a green
light,” he said.
Turkish Office
The firm has also received a license from Turkey and is
setting up a representative office in Istanbul to
“identify opportunities in investment and investment
banking” and aims to start business within 30 days, he
said.
In the U.A.E., the bank is seeking approval to set up a brokerage business and is hoping to conclude this by the second quarter. “It is part of our plan to build a regional brokerage business, and initially it will be very small,” he said.
Qatar Islamic Bank increased its stake in the QInvest about six months ago, from 25 percent initially to 49 percent at present, QIB Spokesman Chouaib Othmane said today.