Commercial Bank shareholders have approved a QR1.5bn rights issue at their extraordinary general meeting held in Doha Wednesday night.
They approved an increase in total share capital to QR3.85bn by way of offering 58.8mn new ordinary shares at QR25.5 per piece, which consists of a nominal value of QR10 per share and a premium of QR15.50.
Commercial Bank shareholders would be allowed to buy one new share for every 5.5 held.
Any remaining unsubscribed shares will be dealt with by the bank’s board of directors subject to any required approval of the Commercial Companies Department at the Ministry of Economy and Commerce and the Qatar Financial Markets Authority in line with the Trading in Rights Issue Regulations issued by the QFMA (the QFMA Regulations) and any other applicable regulations.
The shareholders “authorised the board of directors with full authority to complete the necessary procedures to implement the capital increase and allotment of shares and attend to any other matters resulting therefrom in accordance with the Commercial Companies Law (No. 11 of 2015), the QFMA Regulations (including, but not limited to, making arrangements in relation to unsubscribed shares pursuant to Article 10 of the QFMA Regulations), the Company’s Articles of Association and any other applicable regulations.”
They also authorised the board to decide on how to deal with any resulting fractional shares.
The shareholders approved the listing of the rights issue in relation to the company’s increased capital on the Qatar Stock Exchange pursuant to the QFMA Regulations, and any other applicable regulations.
Commercial Bank chairman Sheikh Abdulla bin Ali bin Jabor al-Thani said the rights issue was required as the bank wanted to increase its capital to support its future growth as well as to meet the capital requirements for Basel III.
Sheikh Abdulla also said the bank had been identified as a Domestic Systemically Important Bank (DSIB) under the Qatar Central Bank’s regulatory framework, and hence requires a higher capital buffer compared to a non-DSIB bank.
“On behalf of the Board of Directors, I would like to express our sincere appreciation for the visionary leadership of HH the Emir Sheikh Tamim bin Hamad al-Thani, and for the continued guidance and support from HE the Prime Minister and Minister of the Interior; HE the Minister of Finance; HE the Minister of Economy and Commerce and HE the Governor of the Qatar Central Bank,” Sheikh Abdulla said.
Commercial Bank vice-chairman and managing director Hussain Alfardan and other directors were among those present at the extraordinary general meeting held at the Commercial Bank Plaza.
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