Qatar’s Doha Insurance Gets Shareholder Nod For $120m Rights Issue

Qatar’s Doha Insurance said on Tuesday it had received shareholder approval for a capital increase worth QAR436.7 million ($119.9 million) aimed at strengthening its ability to work at home and abroad.

The insurer said the plan – which will nearly double its capital to QAR500 million – had been approved at a meeting on Monday and would see 24,260,000 new shares offered to shareholders at a price of QAR18 per share.

The offer price is a substantial discount to the QAR27.55 closing price on Monday. Rights issues in Qatar and across the Gulf region are usually offered at steep discounts.

Shareholders will be allowed to subscribe for nine new shares for every 10 they currently own, Tuesday’s statement to the Qatar bourse said.

Doha Insurance said last month it had received regulatory approval for the rights issue, which would increase financial solvency and further improve its credit rating, which would allow it to compete for mega projects both locally and internationally.