Qatar’s bourse plans rights issue trading

Traders speak with each other as they sit behind their desks in front of the Qatar stock exchange board, in Doha on February 4, 2014. (Reuters)

Qatar’s stock exchange plans to allow investors to trade rights to share issues, which would let them profit from capital increases even without subscribing to them, the bourse said on Sunday.

Rights allow their holder to subscribe to a share issue, usually at a fixed price that may be lower than the market price. To exercise rights, investors need to commit more money - but if rights are tradable, investors can simply sell them.

The bourse gave no specific timeline for the reform but said it was working with regulators on the matter. Saudi Arabia’s bourse, the biggest market in the Gulf, already allows trades in rights.

Last Update: Wednesday, 20 May 2020 KSA 09:45 - GMT 06:45