DUBAI Feb 18 Qatar's Doha Insurance
said on Tuesday it had received shareholder approval for a
capital increase worth 436.7 million riyals ($119.9 million)
aimed at strengthening its ability to work at home and abroad.
The insurer said the plan - which will nearly double its
capital to 500 million riyals - had been approved at a meeting
on Monday and would see 24,260,000 new shares offered to
shareholders at a price of 18 riyals per share.
The offer price is a substantial discount to the 27.55
riyals closing price on Monday. Rights issues in Qatar and
across the Gulf region are usually offered at steep discounts.
Shareholders will be allowed to subscribe for nine new
shares for every ten they currently own, Tuesday's statement to
the Qatar bourse said.
Doha Insurance said last month it had received regulatory
approval for the rights issue, which would increase financial
solvency and further improve its credit rating, which would
allow it to compete for mega projects both locally and
($1 = 3.6415 Qatar riyals)
(Reporting by David French; Editing by Olzhas Auyezov)