DUBAI, Oct 18 (Reuters) - Qatar's Gulf Warehousing Company (GWC) will begin its 458 million riyal ($126 million) rights issue that will boost the company's capital by 25 percent on Nov. 8, it said on Sunday.
The issue will see stock holders offered one new share for every four shares held, with those owning shares at the close of business on Oct. 12 eligible, it said in a bourse filing.
Shareholders at that date who do not wish to subscribe to all their rights can trade them on Qatar Exchange starting from Sunday until Oct. 29, the filing added.
GWC's shareholders approved the rights issue in September, in which the company will sell 11.89 million shares at a price of 38.5 riyals each.
Shares were trading at 63 riyals at 0855 GMT, around the same level as on Oct. 12.
Rights issues in the Gulf region are usually priced at steep discounts to the market rate.
While the September statement didn't disclose the rationale behind the rights issue, local newspaper Gulf Times said at the time it was to boost the company's capital base and to support GWC's expansion plans, including the development of the GWC Bu Sulba Logistics Park.
($1 = 3.6408 Qatar riyals)
(Reporting by Nadia Saleem; Editing by Mark Potter) ((nadia.saleem@thomsonreuters.com; +97143664256; Reuters Messaging: nadia.saleem.thomsonreuteres@reuters.net))
The issue will see stock holders offered one new share for every four shares held, with those owning shares at the close of business on Oct. 12 eligible, it said in a bourse filing.
Shareholders at that date who do not wish to subscribe to all their rights can trade them on Qatar Exchange starting from Sunday until Oct. 29, the filing added.
GWC's shareholders approved the rights issue in September, in which the company will sell 11.89 million shares at a price of 38.5 riyals each.
Shares were trading at 63 riyals at 0855 GMT, around the same level as on Oct. 12.
Rights issues in the Gulf region are usually priced at steep discounts to the market rate.
While the September statement didn't disclose the rationale behind the rights issue, local newspaper Gulf Times said at the time it was to boost the company's capital base and to support GWC's expansion plans, including the development of the GWC Bu Sulba Logistics Park.
($1 = 3.6408 Qatar riyals)
(Reporting by Nadia Saleem; Editing by Mark Potter) ((nadia.saleem@thomsonreuters.com; +97143664256; Reuters Messaging: nadia.saleem.thomsonreuteres@reuters.net))
