Al Mazaya Qatar to raise capital to QR1bn

Qatar Investment House was commissioned to act as lead underwriter and bookrunner for the IPO, with proceeds to be used to raise the company's capital to QR1bn.

This move follows a six-month preparation period, during which Al Mazaya appointed a professional and knowledgeable team of qualified personnel, provided them with advanced training, developed an organizational structure and management system, created a corporate identity for the company, and set the related policies and strategies.

The firm has conducted market research and concluded a number of transactions, and is now gearing up to develop a number of mega projects, in addition to its current interests in different projects throughout Qatar, including Lusail Development, The Pearl-Qatar and Al Dafna Area.

Commenting on the occasion, Mr Siraj Saleh Al Baker, Managing Director of Mazaya Qatar Real Estate Development Company, said:

'The particular focus of the company's activities is the booming real estate investment and development sector in Qatar and other GCC countries, fuelled by the region's record economic growth, which has had a significant impact on the market, and by the ongoing rapid population growth which is resulting in increased demand for residential and commercial units.'

'Al Mazaya Qatar is actively involved in developing residential, investment and commercial projects throughout Qatar, establishing property funds and portfolios, and providing consultancy services on property related matters,' he added.

Al Baker went on to say that the company has taken the pulse of the Qatari market, carefully monitored its movement and tried to conclude some transactions, but because the market seems to be maintaining its continuous upward trajectory, an immediate response is necessary with regard to any opportunity that may arise.

He added that this market understanding was gained after several experiences, as the lack of the required rapid action prevented the company from concluding some deals in the past.

Al Mazaya Qatar is a Qatari joint stock company, established with a total capital of QR1bn, of which QR500m is paid up and has been divided into 50 million shares, while the remaining QR500m will be raised through IPO.

The shares of the Shari'a-compliant company's capital have been divided among Qatari and GCC investors.

The firm intends to inject 50% of the total capital into the property development sector and 25% into property management, with the remaining capital being invested in property funds and portfolios, seeking optimum return through property trade.