Doha Bank’s $426m rights issue covered 1.8 times
Dubai, March 25, 2013
Doha Bank, Qatar's fifth-largest lender by market value, said on Monday that its rights issue worth 1.55 billion riyals ($426 million) was nearly twice covered by investors.
The offer, worth 25 percent of the bank's existing share capital, was 1.8 times covered by local investors during the offer period, which ran from Feb. 28 to March 13, the bank said in a bourse filing.
An oversubscription had been expected since the shares were offered at 30 riyals each, a substantial discount to the market price. Doha Bank shares closed up 0.7 percent on Monday at 46.80 riyals.
The issue was the first part of a two-part capital increase which is to boost share capital by a total 50 percent. The second part is an offer of global depositary receipts in London, though the timing for this has yet to be fixed. JP Morgan Chase will managing the GDR offering.
An October research note from Arqaam Capital said Doha Bank's Tier 1 capital adequacy ratio would fall to 9.6 percent by the end of 2013 without a capital increase. – Reuters