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Mon 14 Sep 2015 11:19 AM

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Qatar's GWC gets shareholder nod for $125.8m rights issue

The logistics company will sell 11.89 million new shares at a price of 38.5 riyals each

Qatar's GWC gets shareholder nod for $125.8m rights issue

Shareholders of Gulf Warehousing Company have approved plans for a 458 million riyal ($125.8 million) rights issue, which will boost the firm's capital by 25 percent, according to a bourse filing on Monday.

The logistics company will sell 11.89 million new shares at a price of 38.5 riyals each, with those holding shares at the close of business on Oct. 12 eligible for the rights issue, the statement said. Qatar-based bank Masraf Al Rayan will advise GWC on the issue.

The subscription period will be disclosed at a later date, once regulatory approval for the timing has been granted, it added.

The proposed rights issue price is a significant discount to Thursday's closing price of 70 riyals -- GWC shares did not trade on Sunday due to the shareholding meeting that day.

Rights issues in the Gulf region are usually priced at steep discounts to the market rate.

While the statement didn't disclose the rationale behind the rights issue, local newspaper Gulf Times said it was to boost its capital base and to support GWC's expansion plans, including the development of the GWC Bu Sulba Logistics Park.

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