Commercial Bank has received approval from the Ministry of Economy and Commerce to increase the foreign ownership limit (FOL) to 25%, ahead of Qatar Stock Exchange (QSE) entering the 'emerging' market by June from its present 'frontier' status.
"QSE would like to inform investors in the Qatari market that the Qatar Central Securities Depository Company has amended its systems in compliance with the approval granted by the Ministry of Economy and Commerce," a bourse spokesman said in a communiqué yesterday.
Among the international funds currently invested in Commercial Bank -- the second-largest bank in Qatar by assets -- are Templeton Asset Management, Pictet Asset Management and Norges Bank Investment Management, according to Thomson Reuter's data.
The increased FOL became effective from yesterday. Commercial bank has 296.94mn total subscribed shares, of which free float constitute 81% or 240.77mn shares.
Earlier, the bank's shareholders, at an extraordinary general assembly, had approved the board's proposal to increase the FOL to 25% by making necessary amendments to its Articles of Association.
Commercial Bank, which is a mid cap stock in the main Qatar Index, is expected to receive more interests in view of the higher FOL, market sources said.
Last month, another lender, al khaliji, had received shareholders' approval to enhance the FOL to 49%.
Many listed companies, it is learnt, are in the process of easing the FOL in view of MSCI upgrade, after which as much as QR2bn to QR5bn foreign funds inflow are expected.
© Gulf Times 2014
