(MENAFN- Gulf Times) Masraf Al Rayan has announced that its stock split will be carried out after the end of trading session today.
Upon the instructions from the Qatar Financial Markets Authority, the nominal value of all listed shares on the Qatar Stock Exchange will be QR1 per share.
Adel Mustafawi, Masraf Al Rayan group chief executive officer, explained that the share split is a process whereby a single share is divided into 10, with the nominal value of each share being QR1, multiplied by the number of shares held 10 times, without any impact or change in shareholders' equity, and will not affect the total market value of a shareholder portfolio.
'The split of the stock will double the number of shares available for trading 10 times the existing level, Mustafawi said.
Mustafawi added that the share split will not affect the total cash dividends distributed to the shareholders and the net profit will remain the same.
The paid up capital will not change, while the book value per share will decrease due to the increase in the number of shares resulting from the split, with total shareholders' equity remaining unchanged.
There will also be no impact of the split on shareholder equity, which includes the paid-up capital, reserves and retained earnings. Therefore, the shareholder equity remains as it is before and after the split.
Masraf Al Rayan chairman and managing director Dr Hussein al-Abdullah expressed his confidence that this 'measure will achieve its objectives by expanding the ownership base of listed companies as a result of the entry of a new segment of investors, who prefer to trade low-priced stocks.
The Extraordinary General Assembly of Masraf Al Rayan approved at its meeting held on February 25, the proposed amendments to the bank's Articles of Association with the aim of adjusting the nominal value to QR1 per share instead of QR10 and to amend the relevant provisions of the Articles of Association.
This was in accordance with the decision of the Board of Directors of Qatar Financial Markets Authority in its fourth meeting for the year 2018 (held on 16/12/2018) pertaining to the amendment of the nominal value of the shares of the companies listed in the main and secondary markets in Qatar to become one QR1 per share, effective today.-
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