GWC chairman Sheikh Abdulla bin Fahad bin Jassem bin Jabor al-Thani presides over the company’s Extraordinary General Meeting. PICTURE: Thajudheen

By Peter Alagos
Business Reporter


Gulf Warehousing Company (GWC) has received shareholders’ nod for a rights issue through which it is aiming to raise as much as QR458mn to shore up its capital base and part-fund its expansion.
The company will issue 11.89mn shares at QR38.5 (including a premium of QR28.5).
The proposal for the rights issue was yesterday approved at the extraordinary general assembly meeting, which was presided over by GWC chairman Sheikh Abdulla bin Fahad bin Jassem bin Jabor al-Thani.
The move allows the company to continue fulfilling its vision in innovating and delivering “the best logistics hubs and facilities”, according to Sheikh Abdulla.
“By providing the most comprehensive solutions and by constantly developing dynamic and flexible infrastructure, we are able to remain true to our purpose and ensure the best possible returns to our shareholders,” he said.
Masraf Al Rayan Group has been mandated as the issue manager.
However, the company did not specify by when the issue will hit the market.
All shareholders, as on October 12, will be eligible for the rights issue pending approval from authorities. Both the subscription period and terms and conditions will be announced in local newspapers at the beginning of October, a GWC spokesman said.
Also, GWC will ensure that the process will be complete by the end of November with more details and updates available at the company’s website.
Earlier, the Corporate Supervision Department at the Ministry of Economy and Commerce (MEC) approved the GWC board’s proposal to increase the company’s capital by 25%, which is equivalent to 11.89mn shares at QR38.50 per share (a nominal value of QR10 per share, and an issuing premium of QR28.50 per share) for existing shareholders.
According to GWC, the rights issue will fund a variety of GWC’s projects, particularly the GWC Bu Sulba Logistics Park, which was awarded in December 2014 by the Economic Zones Company (Manateq).
Set to be operational by the first quarter of 2017, the company has completed the levelling and compacting stage at the logistics stage and mobilised the construction stage.
Similarly, the rights issue would support the development of the hub “according to schedule” and to ensure that the equity funds that are part of the development would allow the company to maintain a healthy debt/equity ratio.
In the first six months of 2015, GWC said its net profits increased 30% to QR87.7mn while revenues peaked at QR405.7mn during the same period.
GWC has also expanded its services and facilities, and is now the authorised service contractor (ASC) for United Postal Service (UPS) in Qatar, providing express courier services through its flagship location and four strategically-placed express shops throughout the state.
The company has also begun expansions in its Logistics Village Qatar (LVQ) and Ras Laffan facilities, providing more than 50,500sqm in additional warehousing capacity.
GWC was recently awarded the ISO 27001:2013 for information security management systems (ISMS) after a thorough audit of its Record Management Services (RMS) department by Lloyd’s Register Quality Assurance.
The assembly also approved an amendment to Article 6 of GWC’s constitution and articles of association on the company’s share capital, granting the board the right to decide upon the shares’ fractions.
It also approved the amendment of Article 30 of the company’s constitution and articles of association to read “The board of directors shall elect by secret ballot the chairman and vice-chairman for a period of three years.”