Qatar First Bank (QFB) announced that it has received the regulatory go-ahead to proceed with its ‘Rights Issue,’ as approved by the shareholders at the bank’s recent concluded Extraordinary General Meeting (EGM). Held on 22 September 2021, the EGM resolved to increase the bank’s capital from QAR 700 million up to QAR 1.120 billion, representing a 60% increase from the current nominal paid-up share capital, by way of offering 420 million new ordinary shares for subscription by means of a rights issue.
The bank’s shareholders, who are registered in the shareholders’ register with Qatar Central Securities Depository (QCSD), will be given the right to subscribe to the new shares at close of trading on Sunday, March 13, 2022. Any person holding Subscription Rights at the end of the trading period on Tuesday, March 29, 2022, either by receiving them in their capacity as an eligible shareholder or through buying them during the trading period (a “Holder of Subscription Rights”) will be entitled to subscribe to the new shares. The new shares will be offered at a price of QR1 nominal value plus QR0.2 premium per share. The premium is inclusive of issuance costs not exceeding 1 percent of the value of subscribed shares.
Sheikh Faisal bin Thani Al Thani, Chairman of QFB said: “We are very happy to announce the bank’s capital increase which comes at a time where QFB is seeing an increase in profitability and sustainable investment expansion in Qatar and other global markets over the past two years. Through this strategic directive, the bank will enjoy a stronger capital base thus enabling our strategic growth plan. We expect to see further enhancements in the bank’s performance in the upcoming years, repositioning our bank as a regional player in the Shari’a compliant banking universe, guided by the board of directors’ vision.”
Trading of the Subscription Rights will commence on Wednesday, March 16, 2022, and end on Tuesday, March 29, 2022. Thereafter, the subscription period for Holders of Subscription Rights will start on Wednesday, April 6, 2022, and will end at 1.00pm Doha local time on Tuesday,April 19, 2022.
QFB has recently announced its financial results for the year ending 31 December 2021, recording the bank’s highest ever net profit attributable to equity holders of the bank of QAR100.37 million in the previous 6 years. QFB was able to overcome the challenging market conditions, improved its operational efficiency, and diversified its products and services, owing to its new leadership and strategic direction. The bank maintained a sustainable fee income stream, dropped funding costs, and has maintained a well-managed deposits book, resulting in a stronger balance sheet and healthy liquidity position for the year.
Qatar First Bank LLC (Public) is the first independent Shari’ah compliant bank authorized by the QFC Regulatory Authority (QFCRA) and a listed entity on the Qatar Stock Exchange (QSE: QFBQ).