Tribune News Network
Doha
The extraordinary general assembly (EGA) meeting of Dukhan Bank has approved the conversion of the bank to a Qatari public shareholding company, a direct listing of the share capital of the bank on the main market of the Qatar Stock Exchange, and increasing the level of foreign ownership of the shares of to 49 percent.
The EGA also approved the valuation reports determining the valuation of the bank prepared by independent evaluators. The bank appointed the KPMG Qatar branch (KPMG) and Access Company (Moore) as the independent valuators to assess the bank’s assets and liabilities in order to prepare the independent valuation reports.
QNB Capital is acting as listing advisor to Dukhan Bank, K&L Gates as international legal advisor, and Sharq Law Firm as Qatar legal advisor in connection with the transaction.
The EGA approved the valuation and applicable price of the shares of the bank which will be used in the direct listing process at QR4.35 per share, as approved by the board and the QFMA.
Amending the memorandum of association and the articles of association The EGA also approved the proposed amendments to the memorandum of association and the articles of association of the bank.
These proposed amendments are primarily for the purpose of converting the bank to a Qatari public shareholding company and the direct listing of the bank’s shares in the main market on the QSE.
The amendments to the articles of association include, amongst other things, reducing the nominal value of each share of the bank from QR10 to QR1, increasing the level of foreign ownership of the shares of the bank to 49 percent, in addition to other necessary amendments to make the memorandum of association and the articles of association conform to the provisions of the laws in force regarding public shareholding companies. Moreover, the amendments include appointing board members immediately upon the conversion of the bank to a Qatari public shareholding company.
The EGA also approved the appointment of members of the board immediately upon the conversion of the bank to a Qatari public shareholding company led by Sheikh Mohammed bin Hamad bin Jassim Al Thani as the chairman of the board and the representative of Al Thurwa Trading Company.
The EGA authorised the chairman of the board to represent the bank before all competent authorities and to secure and obtain all required approvals from the regulatory authorities in order to complete the matters approved by the EGA
Commenting on the occasion, Dukhan Bank Chairman Sheikh Mohammed bin Hamad bin Jassim Al Thani said, "We are pleased with the results of the EGA as the participating shareholders overwhelmingly approved all of the agenda items after thorough discussions. The direct listing of the share capital of the bank in the main market on QSE and its conversion into a joint stock company is in line with our overall strategy, the characteristics of which were defined with the completion of the first merger in the Qatari banking sector in 2019.
"Today as the fifth largest bank in Qatar with total assets in excess of QR100 billion, we wanted to share the returns of Dukhan Bank’s continued growth with a broader base of shareholders in Qatar and beyond. We consider the listing as a new step that will strengthen the bank’s position globally, with our commitment to environmental governance, social responsibility, and corporate governance framework, which we are committed to in Dukhan Bank, and our adherence to our portfolio, which is enhanced with state-of-the-art digital banking services and products that cater to the ever-changing customer demands.”
He said, "We believe that direct listing will offer attractive levels of trading liquidity and provide an opportunity for external investors and niche clients to join the ongoing growth journey of the Bank, as we aim to continue to increase their profits and investments. We have offered our shareholders one of the highest
dividend rates in the market over the past few years, and now, we offer them the opportunity again to increase their profits and liquidity by offering part of their investments in the market”.
The bank will now seek to complete the final legal and regulatory steps in relation to the listing and will provide a further update in relation to timings in due course.
Dukhan Bank is the third largest and fastest growing Islamic bank in Qatar, licensed and regulated by the Qatar Central Bank, with assets in excess of QR 100 billion.
The bank provides an award winning and full range of Shari’ah compliant banking services including retail, corporate and commercial banking, business banking, private banking, real estate finance, structured finance, investments and asset management.