Qatar's Ahli bank announces $123 million capital hike

Qatar’s Ahli bank announces $123 million capital hike

Ahli Bank, Qatar's seventh-largest listed lender by market value, plans to raise its capital by 20 percent through a rights issue starting later this month, the bank said in a statement on Tuesday.

September 4, 2012 5:30 by Reuters

Ahli Bank, Qatar’s seventh-largest listed lender by market value, plans to raise its capital by 20 percent through a rights issue starting later this month, the bank said in a statement on Tuesday.

This will raise about 448.5 million riyals ($123.2 million), according to Reuters calculations, based on 14.95 million shares being sold in the offering at 30 riyals per share.

The capital increase is priced at a big discount to the current share price, with the stock ending at 62.5 riyals in Tuesday trade, up 4.5 percent.

Existing shareholders can buy one new share for every five they hold, the statement said, with the offer open from September 30 to October 14 inclusive.

Ahli Bank is a unit of Bahrain-based Ahli United Bank , which owns 38.1 percent of the lender.

Qatar Investment Authority, the gas exporter’s sovereign wealth fund, is the second-largest shareholder with a 16.7 percent stake.

($1 = 3.6410 Qatar riyals) (Reporting by David French; Editing by Matt Smith)