In what the board of the fund claims to be the first of its kind, the size of the tender offer is the same as the average discount on the fund over the last 12 months.
The fund traded at a discount of 14% over the 12 months to October 2015, so the tender offer is for 14% of the size of the company.
The offer will be priced at 99% of formula net asset value at time the tender offer is made, however the offer will only be made if the discontinuation vote is defeated.
In the 12 months to 8 October 2015 the fund’s share price fell 7.39% from $1.40 to $1.30 compared to a 15% decrease on the Qatari stock market over the same period. Shareholders also received a 3.5 cent dividend in March 2015.
“The Qatari economy is well positioned to weather lower oil prices as macroeconomic fundamentals remain strong”
In its latest quarterly report, QIF said its net asset value (NAV) per share fell 4.6% during the first nine months of 2015, while the Qatar Exchange index fell 6.7%.
The fund said it expects the Qatari economy to extend its current growth, fueled by the expansion of the non-hydrocarbon sector with demand for domestic goods and services remaining strong.
GDP likely to rise by 4.7% in 2015 and 6.4% in 2016 and 2017. Profits of Qatari listed companies up 12.5% in H1 2015.
“[The] Qatari economy is well positioned to weather lower oil prices, as macroeconomic fundamentals remain strong,” it said.