Introduction

This article attempts to highlight key legal features of the Qatari Initial Public Offering (“IPO”) regime, by touching upon basic principles that must be considered as they are often misperceived, while highlighting the main parameters of the process.

Defining IPOs

Though a basic distinction, it is important to note that undergoing an initial public offering is separate from listing a company's shares on a stock market. The offering process is a form of selling shares, while listing creates a platform for trading of shares on the screen of the stock market.

However, IPOs can be defined as the process by which a company offers its share for the first time, for subscription to an un-identified number of potential shareholders (investors). The offering of shares to an un-identified number of shareholders distinguishes IPOs from private placements, in which shares are offered to pre-identified investor(s).

Possible forms of IPOs