QLM shares soar 24% on QSE debut

January 14, 2021

The shares of QLM Life & Medical Insurance (QLM), which were listed on Qatar Stock Exchange (QSE) on Wednesday, jumped 24 percent on the first day of trading.
Listed with code ‘QLMI’ in the insurance sector, the QLM shares were in high demand as the share price continuously increased throughout the trading session, reaching its day-high at QR3.967 per share before closing at QR3.9 per share.
The share price increase of almost 24 percent compared to the IPO price of QR3.15 represents a remarkable first-day trading performance. The share price increase was supported by strong liquidity in the share as 38.6 million shares exchanged hands with a trading value of QR141.786 million.
The market capitalisation of QLM stood at QR1.365 billion at the close of its trading on the first day.
As usual, price floatation for QLM was permitted only for the first day of listing. Price fluctuation on the second day and thereafter will be permitted by 10 percent up or down as is the case for all other listed companies.
Commenting on QLM’s impressive performance on the debut day, QLM CEO Fahad Mohamed Al Suwaidi said, “The QLM IPO represents the beginning of a new phase of development for our company. I am delighted at the positive response of the market on the first date of trading, which is a sign of investors’ trust in the company.”
The admission to trading of QLM shares brings the number of listed companies on QSE to 48.
Talking to Qatar Tribune on the sidelines of the listing event, QSE CEO Rashid bin Ali Al Mansoori said, “The rise of almost 25 percent in the share price of QLM in the first few minutes of its listing on QSE reflects the strong demand for the stock in the market. More than 5 million shares exchanging hands in a few minutes from the opening is an indication of the positive investor sentiment.”
“The listing of QLM will play a vital role in attracting more local and foreign investors to QSE. It will stimulate trading, enhance investor confidence and increase liquidity at QSE,” Mansoori said.
Qatar Insurance Company (QIC), which will retain a 25 percent stake in QLM after raising QR659 million from the IPO sale, however, finished 0.2 percent lower while the QSE general index closed slightly higher.
QIC, the Middle East and North Africa’s largest insurer by market capitalisation, is planning to channel the proceeds to expand its main property and casualty unit as well as other business lines, QIC Chief Investment Officer Chirag Doshi said.
“The income will also help boost QIC’s capital position and the liquidity generated from QLM’s stake sale will be invested in a very liquid high-quality bonds,” he said.
QLM, which counts the government pension fund as an anchor investor, gets close to 80 percent of its revenue from Qatar and the rest from Oman, Kuwait and the United Arab Emirates. The listing was the first in Qatar since the debut of dairy producer Baladna at the end of 2019, and was the country’s first IPO conducted completely online.


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