DOHA, Jan 20 (Reuters) - JP Morgan will act as lead manager for Doha Bank’s upcoming share sale, the lender’s chief executive said on Sunday.
Doha Bank announced earlier this month plans to increase its capital by 50 percent, with a quarter raised through a local rights issue and the remainder from a share sale in London. .
“It’s one composite deal. For the rights issue, we have the know-how in house. The capital raising is another aspect, and the lead management for that will come from JP Morgan,” Doha Bank chief executive Raghavan Seetharaman told a news conference in the Qatari capital.
The lender, part-owned by the Gulf state’s sovereign wealth fund, plans to increase capital by 25 percent by issuing new shares to current shareholders at 30 riyals per share - a discount to its market price of 54 riyals.
Doha Bank’s capital levels are lower than its Qatari peers and proceeds from the share issue are expected to be used mainly to plug that shortfall, the bank said earlier this month.