Dukhan Bank, the third largest and fastest growing Islamic bank in Qatar with total assets of more than QR100bn, is all set to start trading on the Qatar Stock Exchange (QSE) from February 21.
In this regard, the Qatar Financial Market Authority has accorded approval to the bank, which is listing 5.23bn shares at QR4.35 per piece (including premium of QR3.35). Market capitalisation will be QR22.77bn at listing valuation with sufficient free float of 33.344%.
With its listing, the QSE will have an overall 50 constituents and 13 in the banks and financial services segment.
Asserting that the proposed listing plans are in line with our overall strategy and supported by its shareholders; Dukhan Bank chairman and managing director Sheikh Mohamed bin Hamad bin Jassim al-Thani said "we believe that the direct listing will offer attractive levels of trading liquidity and provide an opportunity for qualified investors and niche clients to join the ongoing growth journey of the bank."
The bank's founders represent 66.66% of total share capital upon listing and will be restricted from selling shares for the first year of trading, as per the QFMA rules, while the remaining share capital of 33.34% shall be freely tradable.
The founders are General Retirement and Social Insurance Authority (Pension Fund) with 24.48% stake; General Retirement and Social Insurance Authority (Military Pension Fund) with 11.67%; Qatar Holding with 6.96%; Al Sanad Trading Company and its related companies with 10.08% and Brooq Trading Company and its related companies with 13.47%.
All of the bank’s listed shares rank pari passu, carrying the same voting rights and same rights to dividends declared, if any. Other than the restrictions imposed and committed to by the founders, the shares are freely transferable.
The bank's articles of association restrict any person other than the founders from owning more than 5% of the share capital.
The Qatar Central Bank issued a decision on December 14, 2022 approving Brooq Trading Company and Al Sanad Trading Company to own up to 10% of the bank’s share capital, and granted a grace period of five years from the date of the decision for these entities to dispose of any excess shareholding. The Qatar Government directly or indirectly owns 44% stake.
The bank was incorporated in 2008 under the name of Barwa Bank and commenced operations in 2009 as a full-service Shariah-compliant entity. It rebranded itself as Dukhan Bank in October 2020, following the merger with International Bank of Qatar in 2019.
As part of the merger, the bank solidified its already strong capital position, which helped it to grow and beat the market on multiple fronts including financing assets, customer deposits and net profit, which have shown double digit growth with a compound annual growth rate of more than 20% post-merger in 2019 till last year-end.
The existing capital base on back of strong profitability, operational efficiency and prudent risk management in the past, allows it to excel in the future as well with same ambitions, the bank said.
Dukhan Bank chairman and managing director Sheikh Mohamed bin Hamad bin Jassim al-Thani.