DOHA: The Qatar Exchange (QE) successfully launched the trading for the Rights Issue of Gulf Warehousing Company (GWCS) yesterday. The bourse said in a statement that the launch of rights trading went not only very smoothly from a technical standpoint but it was also a resounding success with over QR1.1m worth of rights exchanged in 65 trades.
Qatar Exchange Chief Executive Officer Rashid Al Mansoori said: “We are delighted to expand the QSE product offering for investors with the trading of rights. This successful launch will comfort issuers that the trading of rights is a viable mechanism to increase their capital and we already look forward to the upcoming issues which are at various stages of shareholder or regulatory approval”.
As per Qatar Financial Markets Authority regulations, the trading of GWCS rights will take place over 10 trading sessions and will end on October 29, 2015.
The GWCS will begin its QR458m ($126m) rights issue that will boost the company’s capital by 25 percent on November 8, Reuters reported.
The issue will see stock holders offered one new share for every four shares held, with those owning shares at the close of business on October 12 eligible, it said in a bourse filing.
Shareholders at that date who do not wish to subscribe to all their rights can trade them on Qatar Exchange starting from Sunday until October 29, the filing added. GWCS’ shareholders approved the rights issue in September, in which the company will sell 11.89 million shares at a price of QR38.5 each. Shares were trading at QR63 at 0855 GMT, around the same level as on October 12. Rights issues in the Gulf region are usually priced at steep discounts to the market rate.
The Peninsula
