(MENAFN- The Peninsula) The Peninsula
Doha: Dukhan Bank (the“Bank”), the third largest and fastest growing Islamic bank in Qatar, licensed and regulated by the Qatar Central Bank, with assets in excess of QR100bn confirmed today that it has obtained required regulatory approvals from the Qatar Financial Markets Authority (“QFMA”), the Qatar Central Bank (“QCB”) and the Qatar Stock Exchange (“QSE”) for direct listing of Share Capital of the Bank on the main market of the Qatar Stock Exchange and publication of its Listing Document (“Prospectus”).
The Bank proposes that trading of the shares will commence on 21 February 2023. The Prospectus is available on the website of Dukhan Bank and Qatar Stock Exchange.
The capital of the Bank upon listing will be QR 5,234,100,000, divided into 5,234,100,000 shares with each share having a nominal value of QR 1. The approved price of the shares upon listing is QR 4.35 per share, made up of QR 1 per share of nominal value and QR 3.35 per share premium. The listing price per share results in a market capitalization of QR 22,768,335,000 at the listing valuation.
The Bank was incorporated in 2008 under the name of Barwa Bank Q.P.S.C, and commenced operations in 2009 as a full-service Sharia Compliant bank. The Bank rebranded itself under the name of Dukhan Bank Q.P.S.C. in October 2020, following the merger with International Bank of Qatar (“IBQ”) in 2019. IBQ's roots trace back to 1956 and considered as one of the oldest bank in the State of Qatar. IBQ was renowned as a private banking powerhouse with generational trustworthy relationships while Barwa Bank Q.P.S.C was ambitiously dynamic and growing bank rooted in innovation and digitization. The historic first-of-its-kind successful banking merger completion in Qatar in a record time was also a testimony to Bank's managerial abilities toward delivering excellence while maintaining the highest standards.
As part of the merger, the Bank solidified its already strong capital position, which helped it to grow and beat the market on multiple fronts including financing assets, customer deposits and net profit, which shown double digit growth with a CAGR of more than 20 percent post-merger in 2019 till last year-end. The existing capital base on back of strong profitability, operational efficiency and prudent risk management in the past, allows it to excel in the future as well with same ambitions. The rebrand resulted in an all-round revamp that reimagined how customers manage their day-to-day banking by offering a secure, simplified and seamless banking experience. Dukhan Bank has offered customer-centric, investor-friendly, innovative and technology-driven banking solutions and currently focusing on ESG initiatives. Currently, the Bank operates an efficient network of branches spread across the Country delivering a range of financial services to over 150,000 customers.
Commenting on the occasion, Chairman and Managing Director of Dukhan Bank Sheikh Mohammed Bin Hamad Bin Jassim Al Thani, said:“We are delighted to confirm our proposed listing plans, which are in line with our overall strategy and supported by our shareholders. We believe that the direct listing will offer attractive levels of trading liquidity and provide an opportunity for qualified investors and niche clients to join the ongoing growth journey of the Bank.”
The Bank has commercial registration number 38012 and is headquartered at Grand Hamad Street, P.O. Box 27778, Doha, Qatar and regulated by the Qatar Central Bank. The Bank was converted to a Qatari public shareholding company by virtue of decision number 02 of 2023 issued on 22 January 2023 by the Minister of Commerce and Industry.
Dukhan Bank provides an award-winning and full range of Sharia compliant banking services, including retail, corporate and commercial banking, business banking, private banking, real estate finance, structured finance, investments, and asset management. The Bank and its subsidiaries are primarily engaged in financing, investing and advisory activities in accordance with Sharia rules as determined by the Sharia Committee and provisions of their respective memorandum and articles of association. Investment activities are carried out for proprietary purpose and on behalf of customers.
Founders of the Bank represent 66.66 percent of the Bank's total share capital upon listing and will be restricted from selling shares for the first year of trading, as per the Qatar Financial Markets Authority (QFMA) rules. The remaining share capital of 33.34% shall be freely tradable. All of the Bank's listed shares rank pari passu, carrying the same voting rights and same rights to dividends declared, if any. Other than, the restrictions imposed and committed to by the Founders, the shares are freely transferable.
The articles of association (“Articles”) of the Bank restrict any person other than the Founders from owning more than 5 percent of the share capital of the Bank. The QCB issued a decision on 14 December 2022 approving Brooq Trading Company LLC and Al Sanad Trading Company LLC to own up to 10% of the Bank's share capital, and granted a grace period of five years from the date of the decision for these entities to dispose of any excess shareholding. Qatar Government directly or indirectly owns 44.0 percent of the share capital of the Bank.
The information in this announcement is subject to change, including the date of Listing, may be influenced by a range of circumstances such as market conditions. Acquiring investments to which this announcement relates may expose an investor to a significant risk of losing all or part of the amounts invested. Persons considering making such investments should consult an authorised person specialising in advising on such investments. This announcement does not constitute a recommendation concerning the Bank's shares. The value of the shares can decrease as well as increase. Potential investors should consult a professional advisor as to the suitability of the Listing for the person concerned. Past performance cannot be relied upon as a guide to future performance. The information contained in this announcement (the“Information”) is for background purposes only.