Commercial Bank said it will implement the Qatar Financial Markets Authority’s (QFMA’s) stock split directive on June 9, thus becoming the first company in Qatar to implement the directive.
The QFMA’s directive issued in December 2018 seeks to regulate the stock split of companies listed on the Qatar Stock Exchange (QSE). The directive stipulates that the nominal value of a share shall be reduced from QR10 to QR1, an initiative that aims to appeal more to investors, especially small and retail investors; increase liquidity in the market; and ultimately improve a stock’s price and valuation.
Commercial Bank shareholders do not need to take any action due to the share split. Shareholders’ holdings will be automatically adjusted as of June 9, resulting in a multiplication of the number of shares owned by every shareholder by 10.
The proportionate ownership of existing shareholders and Commercial Bank’s market capitalisation will not change as a result of the share split, the bank said on Sunday.
Commercial Bank’s total number of shares will increase from 404,725,375 to 4,047,253,750, at a nominal value of QR1. Commercial Bank’s paid-up capital will remain unchanged at QR4,047,253,750, divided into 4,047,253,750 ordinary shares with the nominal value of each share being QR1.
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