Surge of 639% in Stock's Market Value
In a significant move for Qatar's economy, Mesaieed, a Qatari-based company, has announced plans to list on the London Stock Exchange, marking the first foreign listing on the exchange since 2010. This decision follows the successful initial public offering (IPO) of Mesaieed in Qatar in 2021, which was the country's first IPO since 2010.
Foreign ownership in Qatar's stock market is generally aligned with the broader foreign ownership regulations in the country. Currently, foreign investors can own up to 49% of a Qatari company, though full ownership is allowed in certain sectors under specific conditions. For instance, foreign ownership in the stock market might be subject to similar caps, unless companies are listed in free zones or under special arrangements like the Qatar Financial Centre (QFC), where different rules might apply.
Mesaieed's listing on the London Stock Exchange will provide it with increased visibility and access to a broader investor base. The proceeds from the planned listing are expected to raise around 1.5 billion pounds ($1.9 billion), which will be used to fund its expansion and growth strategies. Mesaieed's shares will be offered to institutional investors and retail investors in the UK and internationally.
The London Stock Exchange has a strong track record in supporting the growth of companies in the chemical sector, and Mesaieed's listing is expected to strengthen its position as a leading player in the global chemical industry. Mesaieed holds stakes in companies that produce caustic soda, polyethylene, and other chemical products. However, the specific companies in which Mesaieed holds stakes were not specified.
Qatar is drafting new laws to boost foreign investment, which could lead to more favorable conditions for foreign investors in the future. Additionally, the Qatar Financial Markets Authority (QFMA) has introduced a new Code of Market Conduct, which aligns Qatar's market regulations with global standards, potentially enhancing the attractiveness of Qatar's stock market to foreign investors.
It's worth noting that during the IPO of Mesaieed in 2021, only Qatari citizens were allowed to subscribe for shares. However, with the upcoming listing on the London Stock Exchange, foreigners will have the opportunity to purchase shares of Mesaieed, a Qatari company.
This move by Mesaieed is seen as a shift in Qatar's policies regarding foreign investment in its stock market, and it marks another significant step in Qatar's efforts to attract foreign investment. The successful IPO of Mesaieed in Qatar in 2021 and its subsequent listing on the London Stock Exchange could pave the way for more foreign investment in Qatar's stock market in the future.
[1] Law No. (1) of 2019 - https://www.qfc.org.qa/legislation/laws/law-no-1-of-2019/ [2] Qatar National Vision 2030 - https://www.qatar2030.qa/en/ [3] Qatar Financial Markets Authority (QFMA) - https://www.qfma.org.qa/ [4] Qatar's new laws to boost foreign investment - https://www.reuters.com/business/finance/qatar-drafting-new-laws-boost-foreign-investment-2021-03-30/
Foreign investors, due to the foreign ownership regulations in Qatar, can currently own up to 49% of a Qatari company. With Mesaieed's listing on the London Stock Exchange, however, foreigners will have the opportunity to purchase shares of this Qatari company for the first time since 2010.
The proceeds from Mesaieed's planned listing are expected to be used to fund its expansion and growth strategies, potentially attracting more foreign investment to Qatar's stock market in the future.
