Subsequent to the successful listing of QLM’s stock at the Qatar Stock Exchange (QSE), followed by withdrawal of parental guarantee by QIC, S&P Global Ratings has reassigned its ‘A negative’ issuer credit and financial strength ratings on QLM Life and Medical Insurance Company with the outlook stable.
The current rating is based on stand-alone strength of QLM’s own strong market position as a leading life and health insurance company and its good performance track record coupled with excellent capital adequacy.
Fahad Mohamed al-Suwaidi, chief executive officer of QLM, stated: “We are encouraged by S&P’s assertion of our strong financial strength and dominant market position, which has been well reflected in the rating ‘A- with stable outlook’ as assigned to QLM.
“The rating shall open more opportunities both locally and internationally to capture large strategic accounts and to expand its regional footprint across GCC through the reinsurance route. With the listing of the company at Qatar Stock Exchange, the company has entered a new era and a strong credit rating shall help to further cement its leading position in the insurance market.”
QLM marked the entry into the QSE trading ring with its chairman Sheikh Saoud bin Khalid bin Hamad al-Thani ringing the customary bell in the presence of Qatar Insurance Group chief executive Salem Khalaf al-Mannai, QSE chief executive Rashid bin Ali al-Mansoori, QSE listing director Abdulaziz al-Emadi, and other dignitaries.
The shares of QLM were listed with the code QLMI in the insurance sector, which already has five other listed constituents.
The opening price on the first day of trading was QR3.30 and the closing price was QR3.90, showing an increase of 23.8% on the very first day of listing.
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% up/down as the case for all other listed companies.
“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 day of trading, which is a sign of investors’ trust in the company,” al-Suwaidi earlier said.
The company found its way into the QSE after successfully concluding its initial public offering through which it had offered 210mn ordinary shares at QR3.15 a piece (including QR2.14 premium), to garner as much as QR659.4mn.
QLM was established on April 30, 2018 with an authorised capital of QR350mn, which is 100% paid in full. The company’s main objective is to carry out life and medical insurance and reinsurance activities under its licence issued by the Qatar Central Bank, and any additional insurance activities, which may be licensed to the company in the future.