DOHA: Shareholders of Gulf Warehousing Company QSC approved the leading logistics provider’s motion to increase its capital through subscription to a rights issue. The measure was approved during the company’s Extraordinary General Meeting held in Doha yesterday.
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 percent, which is equivalent to 11,890,244 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.
Based on the approval, Masraf Al Rayan Group shall be assigned as the issues manager for this rights issue, as well as assign Ernst and Young as the financial adviser and external auditors for the same. It is expected that 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 local newspapers at the beginning of October. The company will ensure that the process will be complete by the end of November, with more details and updates available at the website of the company.
The rights issue will fund a variety of GWC’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. Set to be operational by the first quarter of 2017, the company has completed the leveling and compacting stage at the logistics stage, and mobilised the construction stage. The rights issue approved by the shareholders during the extraordinary general meeting would support the development of this hub according to schedule, and to ensure that the equity funds for part of the development would allow the company to maintain a healthy debt/equity ratio.
GWC Chairman Sheikh Abdulla bin Fahad bin Jassem bin Jabor Al Thani (pictured) expressed his pleasure at the approval, citing the impact this will have on allowing GWC to continue fulfilling its vision in innovating and deliver the best logistics hubs and facilities, and stated: “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.”
In addition, the assembled approved a few more points of order, including an amendment to Article (6) of the Company Constitution and Articles of Association regarding the company’s share capital; granting the Company’s Board the right to decide upon the shares’ fractions; and approving the amendment of Article 30 of the company’s constitution and articles of association so that it reads: “The Board of Directors shall elect by secret ballot the Chairman and Vice-Chairman for a period of three years.” (previously only one year).
GWC has delivered strong and steady growth in its net profits in the first half of 2015, marking a 30 percent increase in net profits; achieving QR87.7m. This robust growth was mirrored in the company’s revenue streams, with total revenues peaking at QR405.7m during the same period.
The company has most recently demonstrated its commitment to setting a world class standard in logistics operation by expanding on both its services and its facilities. GWC is now the authorised service contractor (ASC) for the United Postal Service (UPS) in Qatar, providing express courier services through its flagship location and four strategically placed express shops throughout the state. The company has also begun expansions in its Logistics Village Qatar (LVQ) and Ras Laffan facilities, providing over 50,500 sqm in additional warehousing capacity.
In order to ensure the best levels of service, the company was recently awarded the ISO 27001:2013 for information security management systems (ISMS) after a thorough audit of its Record Management Services (RMS) department by Lloyd’s Register Quality Assurance.
The Peninsula
