Capital market confidence

18 March 2009 By Una Galani Follow @ugalani

The telecom giant s Qatari joint venture will float on the Doha market in May, after a long wait for calmer markets. Vodafone and Qatar would look silly if the shares tanked on debut as a new listing in Dubai just did. But this exercise in wealthsharing is primed for success.

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Vodafone's Qatar joint venture has published the full details of its planned QAR3.4bn ($950m) initial public offering on the Doha exchange, after the regulator ended its fivemonth delay due to volatile markets. The offer potentially values Vodafone Qatar at $2.3bn.

The offer is only open to Qatari nationals and Qatari institutions. The subscription period is April 1226. Vodafone Qatar will sell 338m existing ordinary shares, representing 40% of the group's existing share capital, at a price of QAR10 per share. The flotation is expected to take place in May.

Vodafone reportedly paid around $2.5bn to enter the joint venture with the Qatar Foundation to jointly control the country's second mobile telephone license in June last year. Vodafone Qatar will be the first private sector mobile phone operator in Qatar.

Vodafone Qatar is a joint venture between the statebacked Qatar Foundation and Vodafone. After the flotation, Vodafone Qatar will control 45% of the listed company, Qatari government pension funds will control 15% and the remainder will be freefloat.

HSBC and Qatar National Bank are advising Vodafone Qatar.

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HSBC and Qatar National Bank are advising Vodafone Qatar.

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