Doha Bank QSC (DHBK), Qatar’s fourth- biggest lender, will increase its capital by as much as 50 percent, in part by offering stock at a 44 percent discount to the current share price in a rights offering.
The company will initially raise capital 25 percent by offering the shares next month at 30 riyals apiece and also plans to issue global depositary receipts to expand capital by as much as a further 25 percent, chairman Sheikh Fahad Bin Mohammad Bin Jabor Al Thani said today on the bank’s website.
“The planned capital raising will potentially remove our main concerns on the stock, weak visibility on loan growth and risks of dividend cuts due to a stretched capital base,” Elena Sanchez-Cabezudo, a Dubai-based analyst at EFG-Hermes Holding SAE, said in an e-mailed report to clients.
Doha Bank Offers Shares at 44% Discount in Capital Increase Plan - Bloomberg
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