QLM Life & Medical Insurance's stock closed at QAR3.90 ($1.07) on its first day of trading on Qatar's stock exchange last Wednesday. This represented a 23.8% increase over the issue price of the stock.
Experts say that the success of QLM’s offering confirms the market’s need for more specialised companies because the health insurance sector is an emerging sector and the demand for health insurance services is increasing. They emphasise the importance of expanding the health insurance sector and its role in developing the health system.
A total of 38.6m shares traded at a value of QAR141.78 m on 13 January, reflecting the strong liquidity of the stock.
60% of QLM’s shares, equivalent to 210m shares, were offered at QAR3.15 per share, in the first initial public offering on the Doha-based bourse since 2019. The sole selling shareholder, Qatar Insurance Company (QIC), in addition to QLM’s other seven founders, jointly retain 40% of QLM’s share capital following the IPO.
QIC plans to use the proceeds of around QAR659m to expand its main property and casualty unit as well as other business lines, according to a Bloomberg TV report. The funds raised will also be invested in very liquid high-quality bonds and help to boost QIC’s capital position.
QLM, the largest provider of group medical insurance in Qatar, was established on 30 April 2018, with authorised and issued capital of QAR350m, which was 100% fully paid up. The company focuses on health insurance and life insurance and reinsurance.