Mekdam Holding to raise QR75mn through rights issue; finds 'promising' growth opportunities

Mekdam Holding is planning to raise as much as QR75.3mn through a rights issue as part of the efforts to shore up its capital base and part fund its expansion plans in view of the “promising” opportunities for growth.
The company's extraordinary general assembly approved the board's proposal to offer 30mn shares at QR2.51 (including QR1.51 premium). This was announced by Mekdam Holding chairman Sheikh Mohamed Nawaf N B K al-Thani after the meeting.
After the rights issue, the company's capital would increase by 40% (QR40mn) to QR105mn; while the remaining would be utilised for its expansion plans.
As per the company's prospectus, the rights issue is expected to hit the market on July 4 and will run up to July 17.
Mekdam Holding believes that the group's business is promising and there are great opportunities for steady growth as it reasoned for the capital increase. The company's revenues grew by 94.3% and 85.4% in 2021 and 2022, respectively. The earnings per share grew by 21.1% and 20% in 2021 and 2022, respectively, on an annualised basis.
Two shares are being offered for every five shares held in accordance with the provisions of the Commercial Companies Law No. (11) of 2015 amended by Law No 8 of 2021 and the Offering and Listing of Securities Regulations and the Rights Issue Trading System issued by the Qatar Financial Market Authority (QFMA).
The issuance premium includes the offering fee, which will not exceed 1% of the value of the subscribed shares, provided that the group obtains the necessary approvals from the regulatory and competent authorities during and upon completion of the procedures.
The extraordinary general assembly approved the mechanism for trading the subscription rights granted to the shareholders of the group in accordance with the provisions of Article (195) of the Commercial Companies Law No 11 of 2015 amended by Law No 8 of 2021 and the system of offering and listing of securities and the system of trading of subscription rights issued by the QFMA.
The meeting also approved the authorisation of the chairman of the board of directors to set a date and announce the start and end of periods for trading rights issue and subscription to new shares and all information according to the applicable laws and regulations.