Qatar Insurance shareholders back rights issue

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Shareholders of Qatar Insurance have approved plans for a rights issue worth QAR963.2m (US$264.6m) and to sell a 20-percent stake to sovereign wealth fund Qatar Holding, the insurer said on Monday.

The company will sell 21.4m new shares to existing shareholders priced at QAR45 each, a bourse filing said.

Like most rights issues in the Gulf Arab state, the proposed price is a significant discount to the market price. Qatar Insurance shares closed on Sunday at QAR71.6.

The planned capital increase, which still needs regulatory approval, is open to those holding shares on February 14 and will happen once a bonus share issue has been completed.

The bonus share offering, giving shareholders one new share for every five they currently hold, was also approved at the shareholder meeting on Sunday.

Shareholders also backed the planned sale of new shares worth 488.6 million riyals to Qatar Holding, a move approved by the insurer's board in October.

Qatar Holding's presence as a strategic partner would strengthen the financial position of the company and help it to compete against major insurance companies elsewhere, the company said at the time.

The Qatari government is already Qatar Insurance's largest shareholder with a 12-percent stake, according to Thomson Reuters data.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Q&A with Noor Bank

Q&A with Noor Bank

Kazim Ali, head of corporate banking at Noor Bank, discusses...

Saudi bank's $6bn IPO ignites religious controversy

Saudi bank's $6bn IPO ignites religious controversy

Plans by National Commercial Bank have prompted some clerics...

Dubai flexes legal muscles as financial court system grows

Dubai flexes legal muscles as financial court system grows

Landmark ruling by the court system in Dubai's financial free...

Most Popular
Most Discussed
  • 14
    ‘How my Dubai mortgage landed me in a police cell’

    I live in the UAE for 10 years. I have had friends flee the country for similar cases. Since no change occurred in the banking system, incidents like this... more

    Thursday, 30 October 2014 9:06 PM - Awi
  • 9
    Do you actually own your house?

    This is unbelievable from Nakheel. In a case where we want landscape our garden with some tiles and grass costing around 12500, Nakheel is demanding a... more

    Thursday, 30 October 2014 9:06 PM - skp
  • 3
    Most Dubai rents continue to fall in Q3, says regulator

    I am curious to see what happens when all those who bought in this mini-boom phase of 2013 come out to sell. Furthermore I am curious to see the effects... more

    Thursday, 30 October 2014 12:49 PM - LordLands