Doha Bank Says Rights Issue Oversubscribed
Qatar's fifth largest lending institution in terms of market value has announced that its issue valued at QAR1.55 million or US$426 million was subscribed 1.8 times.
The offer is 25% of the existing share capital of the bank was oversubscribed nearly twice its value. The first part of the issue is to increase capital to boost share values by 50% while the second part is part of a global depositary receipt holdings in London. The GDR would be priced at least 90% of market share price at the time of the issue.
The capital levels of the bank are lower compared to its competitors and the proceeds from the issue would more than make up for the difference. It is projected by Arqaam Capital that the bank's Tier 1 capital levels would decrease by nearly ten percent by 2013's end without fresh capital infusion.
For the GDR issue, JP Morgan would be lead manager as confirmed by CEO Raghavan Seetharaman.
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