Doha Insurance on Monday said that it would seek shareholder approval next month for a capital increase worth QR436.7 million. The insurer has received regulatory approval for the issuance of 24,260,000 new shares to shareholders through a rights issue, the company said in a filing to Qatar Exchange. The company is planning to use the cash to strengthen its ability to work at home and abroad as the move will nearly double its capital. New shares will be priced at QR8 each, a 30 percent discount to its QR25.70 closing share price on Monday. Rights issues in Qatar and across the Gulf region are usually offered at steep discounts. The rights issue would increase financial solvency and further improve its credit rating, which would allow it to compete for mega projects both locally and internationally, the statement said. Shareholders' approval is still required, with a vote on the rights issue expected to be held on February 17 . The insurer has no state ownership. This is in contrast to most other insurance and financial services firms listed in Qatar , who are partially owned by sovereign investment funds. In February 2013 , shareholders of Qatar Insurance approved a QR963.2 million rights issue as well as a 20 percent stake sale to Qatar Holding , a unit of sovereign wealth fund Qatar Investment Authority . Qatar is in the midst of a construction boom, with the country planning to spend as much as $140 billion on infrastructure projects, including a new airport, stadiums, roads and railways, as it prepares to host the soccer World Cup in 2022.
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