DOHA: Doha Insurance is planning to launch a rights issue to be priced at QR18 per share, QR10 being the face value and the remaining QR8 as premium.
The company’s board met here last Tuesday and decided to table the proposal for approval at an extraordinary annual general meeting (AGM) whose date is to be fixed later.
The company said in a release yesterday the cut-off date for its shareholders to be eligible to subscribe to the rights offer will be a day before the proposed extraordinary AGM.
In other words, those who will be registered as the company’s shareholders until that day will be eligible to subscribe.
“Priority in allotment will be given to existing shareholders,” the company release noted, adding that necessary approvals from the authorities concerned will be sought for the launch of the rights offer after the AGM has cleared the proposal.
The idea of the float is to raise the company’s capital from QR257.4m toQR500m — a 94.25 percent increase. This means that some 24.26 million shares will be on offer for subscription through the float.
Company’s Chairman, Sheikh Nawaf Nasser bin Khalid Al Thani (pictured), said in the statement the proposed capital raise aims to boost the credit ranking of the company and the solvency margin.
This should lead to increasing the company’s competitive ability which, in turn, will qualify it to secure major insurance projects in the local, regional and international markets. “This (the capital raise) takes place within the framework of the company’s future plan for 2013,” Sheikh Nawaf said.