Doha Bank gets nod to raise capital by 20%
06 Mar 2017 - 22:54
Doha Bank’s Extraordinary General Assembly meeting yesterday approved Bank’s plan to raise the paid-up capital by 20 percent from QR2.58bn to QR3.1bn through a rights issue. The bank will issue 51.67 million new shares to existing shareholders.
“The EGM has agreed to increase the bank’s capital from QR2.58bn to up to QR3.1bn by way of offering 51.67 million new ordinary shares for subscription to Doha Bank’s eligible shareholders who are registered in the shareholders’ register with Qatar Central Securities Depository (QCSD) at the close of trading March 15 and the holders of subscription rights, at a price of QR25 per share representing a premium of QR15 in addition to a nominal value of QR10 per share,” said Sheikh Fahad bin Mohammad bin Jabor Al Thani, Chairman of Doha Bank.
EGM agreed to list rights issue at Qatar Exchange in relation to Bank’s raised capital as per QFMA.
“No doubt, there were challenges faced by Capital markets in this region due to the recent substantial decline in oil prices in addition to the political uncertainty in the Middle East that had adversely affected all economic sectors including the banking sector and market liquidity. Therefore, most of the financial institutions opted either for increasing their share capital or issuing bonds and debit notes to overcome this problem, however, this situation may increase the pressure on banks’ performance during 2017 as well,” said Al Thani.
The EGM also agreed to waive the priority rights of eligible shareholders to third parties who would be the holders of those rights as a result of buying the subscription rights from the shareholders and to waive priority rights of the eligible shareholder who does not subscribe during the specified subscription period.
“Due to the wise leadership of Emir H H Sheikh Tamim bin Hamad Al Thani, we trust that Qatar has the capabilities to overcome these problems and difficulties and we look forward to launching many development projects in the coming years that will reflect positively on the performance of the banking industry in Qatar in general and of Doha Bank in particular,” he added.
The Chairman added that during the year, the Board of Directors approved the bank’s five-year strategic plan which incorporates certain amendments to the bank’s business strategy especially with regards to the activities of overseas branches and representative offices across the Globe.
The future plan of the bank includes implementation of an effective Risk Management strategy both at local and international fronts,