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Commercial Bank to be the first company in Qatar to implement 10 for 1 stock split

Commercial Bank to be the first company in Qatar to implement 10 for 1 stock split

20 May 2019

​Doha, Qatar Commercial Bank, Qatar’s first private bank, has announced it will implement Qatar Financial Markets Authority’s (QFMA’s) stock split directive on 9th of June, therefore being the first company in Qatar to implement the directive.
 
QFMA’s directive issued in December 2018 seeks to regulate the stock split of companies listed at Qatar Stock Exchange (QSE). The directive stipulates that the nominal value of a share shall be reduced from QAR 10 to QAR 1, an initiative that aims to appeal more to investors, especially small and retail investors; increase liquidity in the market; and ultimately improve a stock’s price and valuation.
 
Commercial Bank shareholders do not need to take any action due to the share split. Shareholders’ holdings will be automatically adjusted as of June 9, resulting in a multiplication of the number of shares owned by each and every shareholder by 10. The proportionate ownership of existing shareholders and Commercial Bank’s market capitalization will not change as a result of the share split.
 
Commercial Bank’s total number of shares will increase from 404,725,375 to 4,047,253,750, at a nominal value of QAR 1. Commercial Bank’s paid-up capital will remain unchanged at QAR 4,047,253,750, divided into 4,047,253,750 ordinary shares with the nominal value of each share being QAR 1.