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Doha
Commercial Bank will implement Qatar Financial Markets Authority’s (QFMA’s) stock split directive on June 9, thereby becoming the first company in Qatar to implement the directive, the bank announced in a statement on Sunday.
QFMA’s directive issued in December 2018 seeks to regulate the stock split of companies listed at Qatar Stock Exchange (QSE).
The directive stipulates that the nominal value of a share shall be reduced from QR10 to QR1, an initiative that aims to appeal more to investors, especially small and retail investors; increase liquidity in the market; and ultimately improve a stock’s price and valuation.
Commercial Bank said its shareholders do not need to take any action due to the share split.
Shareholders’ holdings will be automatically adjusted as of June 9, resulting in a multiplication of the number of shares owned by each and every shareholder by 10.
The proportionate ownership of existing shareholders and Commercial Bank’s market capitalisation will not change as a result of the share split, the statement said.
Commercial Bank’s total number of shares will increase from 404.72 million to 4.04 billion, at a nominal value of QR1.
The bank’s paid-up capital will remain unchanged at QR4.04 billion divided into 4.04 billion ordinary shares with the nominal value of each share being QR1, the statement said.
Commercial Bank has total assets of QR143.8 billion, customer deposits of QR81.6 billion and has achieved net profit of QR431 million as at March 31, 2019.
The bank has strong credit ratings of (A3) from Moody’s, (A) from Fitch, and (BBB+) from Standard & Poor’s.
Doha
Commercial Bank will implement Qatar Financial Markets Authority’s (QFMA’s) stock split directive on June 9, thereby becoming the first company in Qatar to implement the directive, the bank announced in a statement on Sunday.
QFMA’s directive issued in December 2018 seeks to regulate the stock split of companies listed at Qatar Stock Exchange (QSE).
The directive stipulates that the nominal value of a share shall be reduced from QR10 to QR1, an initiative that aims to appeal more to investors, especially small and retail investors; increase liquidity in the market; and ultimately improve a stock’s price and valuation.
Commercial Bank said its shareholders do not need to take any action due to the share split.
Shareholders’ holdings will be automatically adjusted as of June 9, resulting in a multiplication of the number of shares owned by each and every shareholder by 10.
The proportionate ownership of existing shareholders and Commercial Bank’s market capitalisation will not change as a result of the share split, the statement said.
Commercial Bank’s total number of shares will increase from 404.72 million to 4.04 billion, at a nominal value of QR1.
The bank’s paid-up capital will remain unchanged at QR4.04 billion divided into 4.04 billion ordinary shares with the nominal value of each share being QR1, the statement said.
Commercial Bank has total assets of QR143.8 billion, customer deposits of QR81.6 billion and has achieved net profit of QR431 million as at March 31, 2019.
The bank has strong credit ratings of (A3) from Moody’s, (A) from Fitch, and (BBB+) from Standard & Poor’s.
