Qatar Stocks Exchange Announces QFB, CBQ Shares Split

Doha, June 09 (QNA) - Qatar Stock Exchange (QSE) today started a stock split of Qatar First Bank (QFB) and Commercial Bank of Qatar (CBQ) as part of its plan to implement the stock split mechanism, which began today and will continue until July 7 according to the announced schedule. The stock split of the two banks is scheduled to take effect as of Monday, with the total number of shares of Qatar First Bank following the results of the stock split mentioned is 2 billion shares and the closing price will be QR 0.429, while the number of shares of Commercial Bank 3,291,766,450 shares at a closing price of QR 4.74. The aim of the stocks split carried by Qatar Exchange is to make share prices look more affordable to retail/individual investors even though the total market value of the company and the investor's portfolio have not changed; expand the ownership base of listed companies as a result of the entry of new investors, who prefer to trade low-priced stocks and increase the number of shares available for trading. The Qatar Exchange has carried out the necessary tests on its systems to keep up with the process of splitting the nominal value of the share (from QR10 to QR 1), in full coordination with Qatar Financial Markets Authority, Qatar Central Depository. The new nominal value and the adjusted market value of the share will be dealt with on the next working day following the implementation of the share split. QSE said that there will not be any effect on the ownerships, adding that the stock split will increase the investor's number of shares by 10 times with the total value of these shares remain unchanged. A stock split is used mainly when share prices increase substantially and while the number of outstanding shares increases and price per share decreases, the companies' market capitalization (and the value of the investors' portfolios) do not change. As a result, stock splits help make shares more affordable to retail and individual investors and provides higher liquidity in the stock market. (QNA)