Doha bank rights issue eyes $425.74m

Doha Bank rights issue subscription of 51,674,450 shares, opening here February 28 next week, plans to increase its capital by QR1.55bn (US $425.74 Million approximately). The bank’s rights issue of 25% of its paid-up capital (2.5 shares for ten held shares) is open to shareholders registered at Qatar Exchange at the price of QR 30, inclusive of QR 20 premium on the share’s par value of QR 10. The issue will close at 1pm March 13 next month. The decisions of raising its capital by 50% in two phases as well as distributing 45% dividend for 2012 were announced here yesterday following the banks Extra-Ordinary General meeting. The dividend distribution starts at Doha Bank located at Grand Hamad Street effective working hours from February 24 to March 14. Doha Bank plans to issue Global Depositary receipts (GDRs), listed on London Stock Exchange, to raise the remaining 25% capital in the second phase as part of three-year expansion plan. Doha Bank Chairman Sheikh Fahad bin Mohamad bin Jabor Al Thani told shareholders, “The capital increase has been necessitated in order to achieve the strategic goals at the local, regional and international levels, strengthen the lending capacity, improve the competitive edge and realise the highest levels of performance.” No shareholder can hold more than 2% of the total number of shares after the rights issue allotment while the total holding of non-Qataris should not exceed 25% of the total shares, according to the terms and conditions of Doha Bank. In January, the country’s fourth largest lender announced 5.1% growth in its net profit for fiscal year 2012. Its annual profit was up to QR1.305 Billion at the end of December 31, 2012 compared to QR1.241bn in 2011.