Gulf Warehousing Company, a leading logistics provider in Qatar, said it has won approval from the shareholders for increasing its capital through a new rights issue.

The announcement was made at the end of company’s extraordinary general meeting held in Doha today (September 13).

The corporate supervision department at the Ministry of Economy and Commerce had previously approved the GWC board’s proposal to increase the company’s capital by 25 per cent, which is equivalent to 11.89 million shares, at the price of QR38.50 per share (a nominal value of QR10 per share, and an issuing premium of QR28.50 per share) for existing shareholders.

The price was determined based on a proper, scientific study approved by the regulators, using global and approved valuation modules, said the company in a statement.

The meeting also decided to assign Masraf Al Rayan Group as the manager for the rights issue, while Ernst and Young was named financial advisor and external auditor.

According to senior officials, all shareholders as of October 12 will be eligible for the rights issue provided the date receives approval from the supervisory authorities.

Both the subscription period and terms and conditions will be announced in early October, said the Qatari firm. The company aims to complete the process by the end of November.

Welcoming the shareholders' gesture, GWC chairman Sheikh Abdulla bin Fahad bin Jassem bin Jabor Al Thani said the capital hike through a rights issue will help the company to continue fulfilling its vision in innovating and deliver the best logistics hubs and facilities.

"By providing the most comprehensive solutions and by constantly developing dynamic and flexible infrastructure, we are able to remain true to our purpose and ensure the best possible returns to our shareholders," he noted.

The rights issue will help fund a variety of the company’s projects, in particular the GWC Bu Sulba Logistics Park, which was awarded in December 2014 by the Economic Zones Company (Manateq) to construct and manage the facility, said the company in its statement.

Work is going on at the logistics park, which is set to be operational by the first quarter of 2017.-TradeArabia News Service