Qatar Insurance Company to float rights issue

January 23, 2013 - 7:18:32 am

DOHA: The country’s premier risk underwriter, Qatar Insurance Company (QIC), says it hopes to give away both cash and stock dividends for 2012, and also plans to float a rights issue priced at QR45 after distributing the bonus shares.

The QIC said yesterday its board of directors has recommended distribution of 25 percent cash dividend (QR2.5 per share) and 20 percent bonus shares (one share for each five held) to its shareholders on the back of 2012 profits (QR610m, or $167.1m).

The distribution of bonus shares would raise the company’s capital to slightly over QR1bn. The company said it would thereafter launch a rights issue (the size being 21.4m shares) priced at QR45 — QR 10 being the face or nominal value of the share and QR35, premium.

The rights issue, according to the company, would further enhance its capital to beyond QR1.28bn. The company said in a statement its board of directors met here yesterday and reviewed the company’s performance in 2012 and its financials for the year and made the above recommendations.

The board has also recommended amending article 7 of the company’s Articles of Association to facilitate various Qatari government institutions to own up to more than five percent of the company’s shares.

The board also agreed to increase the company’s authorized capital through a special share allotment to Qatar Holding, the investment arm of the Qatar Investment Authority, the country’s sovereign wealth fund.

The recommendations are to be tabled at the annual general meeting of the company’s shareholders scheduled for February 17 for their approval.

The Peninsula