Subscriptions to Mazaya Qatar’s IPO continued for the second week. There was an overwhelming spirit of hope and optimism among investors, who seemed inspired by real estate experts’ prospects of an imminent recovery in the real estate sector in the GCC markets in general, and in Qatar in particular, during this year. These experts are encouraging the utilization of opportunities in preparation for the next stage of real estate activities and growth.
With Mazaya Qatar’s IPO currently underway and scheduled to remain open until Sunday the 31st January 2010, the company’s strategies have been coming under the spotlight. Mazaya Qatar’s signing of a Memorandum of Understanding (MoU) with the Qatar Foundation for Education, Science and Community Development (QF) and the Qatar National Convention Center (QNCC) to provide for the latter’s staff accommodation needs, marks the beginning of the implementation of the company’s strategy. According to the terms of the MoU, for a ten year period, Mazaya Qatar will have the exclusive right to provide or source 324 housing units for the QNCC.
Muslim scholar Prof. Dr Ali Muhyy Ed-Deen Al-Qara Daghi issued a Fatwa sanctioning the IPO and the trading of Mazaya Qatar’s shares in the market.
“Mazaya Qatar is a Shari’a-compliant company with Fatwa and Shari’a boards. The company has been operating for a while now, and has assets that exceed in value the amount offered for subscription. Therefore, the subscription and trading on the company’s shares is sanctioned,” said the Fatwa.
Mazaya Qatar Real Estate Development Company (QSC) has put up 50 million shares – representing 50 percent of its total capital – for public offering after receiving the approval of the Qatar Financial Markets Authority (No 132/12/2009 dated 24 December 2009).
This is the first IPO in Qatar this year, and has been available for subscription to Qatari nationals and 100 percent Qatari-owned firms since the 17th January, 2010. The IPO will remain on offer until 31 January, 2010. The nominal value per share has been fixed at QR10, to be fully paid upon subscription in order to raise QR 500 million, added to offering cost of Dh50 per share to be used to cover costs and fees incurred on the IPO.
Individual investors may apply for a minimum subscription of 250 shares, with multiples of 100 shares thereafter. Corporate investors may apply for a minimum of 2,000 shares, with multiples of 1,000 shares thereafter. Maximum subscription will be 25 million shares.
Mazaya Qatar has appointed Qatar National Bank (QNB) as lead manager for the IPO, Investment House as the IPO financial advisor, Deloitte and Touche as the Audit Firm, and Gibran Majdalani Advocates as the legal advisor.
Mazaya Qatar Real Estate Development Company was established as a Qatari shareholding company under article No. 68 of the Commercial Companies Law (No. 5 of 2002) and under the terms and conditions of the Company’s Memorandum and Articles of Association. The establishment of the Company was approved by decision No. 22 of 2008, issued by the Qatari Minister of Business and Trade on 10 January 2008.
The Shari’a-compliant company specializes in real estate development and investment, including residential, commercial and industrial compounds, real estate consultancy and research, contracting, maintenance, real estate and commercial brokerage, marketing, building and facilities management, building materials, electrical and mechanical equipment, export and import for business purposes, and investment in any business or sector determined by the Board of Directors or the General Assembly in compliance with the applicable laws and regulations.
