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QLM IPO

QLM Life & Medical Insurance Company QPSC announces its QAR 659,400,000 IPO on the Qatar Stock Exchange

QLM Life & Medical Insurance Company QPSC announces its QAR 659,400,000 IPO on the Qatar Stock Exchange

Dec 06, 2020 (0) comment

QIC-Qatar
  • IPO of Qatar’s leading provider of life and medical insurance
  • 60% of QLM’s shares, equivalent to 210,000,000 shares, are being offered at an Offer Price of QAR 3.15 per Offer Share, making the total size of the Offering QAR 659,400,000, excluding the offering costs of QAR 0.01 per share
  • QLM’s implied total market capitalization at IPO is QAR 1,099,000,000
  • Offering Price of QAR 3.15, resulting from the division of QLM’s market capitalization at IPO by the number of QLM’s post-conversion shares (350,000,000 shares)
  • The Offering Price consists of the nominal value per share of QAR 1.00, a premium of QAR 2.14 and Offering and Listing Fee of QAR 0.01 per Offer Share
  • Continued commitment and support by the selling shareholder QIC, who will retain a 25% shareholding in QLM post-IPO
  • Eligible investors include Qatari citizens and legal entities incorporated in Qatar
  • Prior commitments obtained from several anchor investors to subscribe for 15% of QLM’s share capital during the IPO
  • Subscription Period open from 10 December 2020 to 23 December 2020

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:

  • Leading market position: the Company is the largest provider of group medical insurance in Qatar based on the number of members and size of gross written premiums
  • Long-term customer relationships: the Company has long-term relationships with its group medical and group / credit life insurance customers and high renewal rates, which enables it to generate recurring revenue streams
  • Strong and stable financial profile: the Company’s historically strong financial performance provides it with a competitive advantage in winning new contracts, renewing existing policies and establishing and maintaining relationships with providers. The Company’s solvency ratios have consistently been above statutory requirements
  • Broad customer base: the Company has a diverse portfolio of clients, with no single customer representing more than 8% of the Company’s total gross written premiums
  • Advanced proprietary information systems: the Company’s IT system links the entire insurance life cycle including; client engagement, product configuration, affinity and provider networks, policy administration, premium collection, reinsurance management, accounting and business analytics, and this gives the Company a massive edge over competitors
  • Strong management team: the Company’s management team has extensive experience in the medical and life insurance sectors, averaging over 15 years
  • Unrivalled provider network: the Company has an extensive network of healthcare providers in Qatar and abroad with over 75,000 medical service providers spanning 100 countries on 6 continents
  • In-house capabilities: the Company’s unrivalled end-to-end capabilities distinguishes it from its Qatar-based competitors and positions it to maintain market dominance. These capabilities also provide it with unique ability to support any future mandatory medical insurance schemes in Qatar
  • Superior asset management capabilities: the Company has enjoyed consistent and industry-leading investment performance based on its arrangement with Epicure Investment Management LLC, a leading asset management company.
Details of the Offering:

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.

Offer Shares in the first tranche shall be allocated:

  • first to Individual Investors, and if the number of Offer Shares requested by Individual Investors exceeds the number of Offer Shares, then the Offer Shares shall be allocated on a pro-rata basis to Individual Investors; then
  • if any Offer Shares remain, these shares shall be allocated to Corporate Investors, and if the number of Offer Shares requested by Corporate Investors exceeds the number of Offer Shares remaining, then the Offer Shares shall be allocated on a pro-rata basis to Corporate Investors; then
  • if any Offer Shares remain, then such remaining Offer Shares may be allocated to Eligible Investors at the direction of the Board in its absolute discretion.

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.

Timetable for key events:

Investors intending to subscribe should note key dates in the IPO timeline, as follows:
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).

Lead Receiving Bank:

Qatar National Bank

Other Receiving Banks:

Commercial Bank PQSC, Ahli Bank QPSC, Doha Bank QSC, Al Khalij Commercial Bank PQSC.

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