DUBAI, Feb 18 (Reuters) - 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 internationally. ($1 = 3.6415 Qatar riyals) (Reporting by David French; Editing by Olzhas Auyezov)