Tribune News Network
Doha
Dukhan Bank, the third largest and fastest growing Islamic bank in Qatar, licensed and regulated by the Qatar Central Bank with assets in excess of QR100bn on Sunday confirmed that it has obtained required regulatory approvals from the Qatar Financial Markets Authority (QFMA), the Qatar Central Bank (QCB) and the Qatar Stock Exchange (QSE) for direct listing of the share capital of the bank on the main market of the Qatar Stock Exchange and publication of its listing document (Prospectus).
The bank proposes that the trading of the shares will commence on February 21, 2023. The prospectus is available on the website of Dukhan Bank and Qatar Stock Exchange.
The capital of the bank upon listing will be QR5,234,100,000, divided into 5,234,100,000 shares with each share having a nominal value of QR1. The approved price of the shares upon listing is QR4.35 per share, made up of QR1 per share of nominal value and QR3.35 per share premium.
The listing price per share results in a market capitalisation of QR22,768,335,000 at the listing valuation.
The bank was incorporated in 2008 under the name of Barwa Bank and commenced operations in 2009 as a full-service Sharia Compliant bank. The bank rebranded itself under the name of Dukhan Bank in October 2020, following the merger with the International Bank of Qatar (IBQ) in 2019. IBQ’s roots trace back to 1956 and are considered one of the oldest banks in Qatar. IBQ was renowned as a private banking powerhouse with generational trustworthy relationships while Barwa Bank was an ambitiously dynamic and growing bank rooted in innovation and digitisation.
The historic first-of-its-kind successful banking merger completion in Qatar in a record time was also a testimony to the bank’s managerial abilities toward delivering excellence while maintaining the highest standards.
As part of the merger, the bank solidified its already strong capital position, which helped it to grow and beat the market on multiple fronts including financing assets, customer deposits, and net profit, which showed double-digit growth with a CAGR of more than 20 percent post-merger in 2019 till last year-end. The existing capital base on the back of strong profitability, operational efficiency, and prudent risk management in the past, allows it to excel in the future as well with the same ambitions.
The rebrand resulted in an all-around revamp that reimagined how customers manage their day-to-day banking by offering a secure, simplified, and seamless banking experience. Dukhan Bank has offered customer-centric, investor-friendly, innovative, and technology-driven banking solutions and currently focusing on ESG initiatives. Currently, the bank operates an efficient network of branches spread across the Country delivering a range of financial services to over 150,000 customers.
Commenting on the occasion, Dukhan Bank Chairman and Managing Director Sheikh Mohammed bin Hamad bin Jassim Al Thani said, “We are delighted to confirm our proposed listing plans, which are in line with our overall strategy and supported by our shareholders. We believe that the direct listing will offer attractive levels of trading liquidity and provide an opportunity for qualified investors and niche clients to join the ongoing growth journey of the bank.”
The bank has commercial registration number 38012 and is headquartered at Grand Hamad Street, P.O. Box 27778, Doha, Qatar, and regulated by the Qatar Central Bank. The bank was converted to a Qatari public shareholding company by virtue of decision number 02 of 2023 issued on 22 January 2023 by the Minister of Commerce and Industry.
Dukhan Bank provides an award-winning and full range of Sharia-compliant banking services, including retail, corporate and commercial banking, business banking, private banking, real estate finance, structured finance, investments, and asset management. The bank and its subsidiaries are primarily engaged in financing, investing, and advisory activities in accordance with Sharia rules as determined by the Sharia Committee and provisions of their respective memorandum and articles of association. Investment activities are carried out for a proprietary purpose and on behalf of customers.
Founders of the bank represent 66.66 percent of the bank’s total share capital upon listing and will be restricted from selling shares for the first year of trading, as per the Qatar Financial Markets Authority (QFMA) rules.
The remaining share capital of 33.34 percent shall be freely tradable. All of the bank’s listed shares rank pari passu, carrying the same voting rights and the same rights to dividends declared if any. Other than, the restrictions imposed and committed to by the founders, the shares are freely transferable.
The articles of association of the bank restrict any person other than the founders from owning more than 5 percent of the share capital of the bank. The QCB issued a decision on 14 December 2022 approving Brooq Trading Company and Al Sanad Trading Company to own up to 10 percent of the bank’s share capital, and granted a grace period of five years from the date of the decision for these entities to dispose of any excess shareholding.
Qatar government directly or indirectly owns 44 percent of the share capital of the bank. Eligible investors for trading in the shares from the first day of trading include all Qatari nationals and non-Qatari nationals permitted to trade in the shares in accordance with the Qatar Stock Exchange Rulebook, the Qatar Financial Market Authority Listing Rules, the Qatar Central Bank regulations, the Bank’s articles of association and as otherwise not prohibited by applicable law, which prohibits foreign ownership of the share capital of the bank beyond 49 percent unless an exemption has been provided under the Foreign Investment Law or any other applicable laws or regulations.
Upon listing, the bank is permitted to allow up to 49 percent of the share capital to be in foreign ownership.
The bank has received shareholder approval and, subject to obtaining the additional necessary regulatory approvals including the Council of Ministers’ approval, will seek to increase in the permitted level of foreign ownership of shares of the bank to 100 percent immediately post-listing.
“Any existing shareholders of the bank, who have not done so already, are strongly encouraged to request and complete a QE ‘NIN Information Modification Form’, which may be obtained from the Qatar Central Securities Depository’s website (www.qcsd.com.qa). This will also enable applicants to receive dividend payments directly into a nominated bank account,” the bank said in a statement.
