11-07-2021
Qatar Stock Exchange announced that, in light of the approval of the Qatar Financial Markets Authority to list the “Mekdam Holding Group” company on the veture market on the Qatar Stock Exchange, it was decided to accept the company’s shares for trading in that market as of Monday, 02 August 2021, after completing all the necessary technical and administrative procedures, to become the second company to be listed in the venture market.
The Qatar Stock Exchange declared that the shares of Miqdam Holding Group will be traded on the venture market, in the same way as the shares of companies listed on the main market in terms of types of orders, corporate procedures, settlement and clearing arrangements, and the pricing of its shares will be exactly the same as the pricing of company shares listed in the main market. Its shares will be traded with the same investor number, and the investor will not need to extract a new investor number for those who have an existing number. The company’s share price will be floating on the first listing day, while it will be allowed from the second day to fluctuate by 10% up and down. The data of the company’s founders will be available at the brokerage firms as of Wednesday 28/07/2021 in preparation for trading its shares and receiving buy and sell orders, considering that the company's shares will be directly listed on the venture market.
The Qatar Stock Exchange indicated that there will be no change in the date of the trading session for the day of listing, as brokerage firms will be allowed to enter buy and sell orders on the company's shares for the pre-opening period, as is usually followed at 9:00 am.
The market for emerging companies in the Qatar Stock Exchange will follow the same continuous trading mechanism as in the main market, and the bidding units for shares traded in this market will be the same as in the main market, and the prices will be broadcast in the emerging market through its own independent trading screen. Investors and stakeholders will be able follow up on trading in the venture market and the news of the companies listed in it through the website of the Qatar Stock Exchange, where data on trading volumes and other data related to the market will be published daily on the website of the Qatar Exchange.
Mr. Rashid bin Ali Al-Mansoori, CEO of the Qatar Stock Exchange, welcomed the listing of Mekdam Holding Company on the venture market at the Qatar Stock Exchange, describing the establishment of this market as an important and pivotal event that confirms the development of the Qatari market and adds to its previous successes as one of the most important leading markets in the region. The launch of the new market represents a complementary vision to the main market because it provides an alternative mechanism that enables promising companies, whether small or medium, or those that do not meet the conditions for listing in the main market, to access the market and obtain the necessary financing to develop their businesses.
Mr. Al-Mansoori said: “The launch of the venture market came within the framework of the stock exchange’s vision and strategy aimed at diversifying the investment options and products available to individual and institutional investors, in confirmation of the stock exchange’s leading role in providing financing and expansion opportunities for leading and promising Qatari companies, in order to serve the achievement of strategic goals of Qatar National Vision 2030 and support the economic diversification efforts in the country.
Mr. Al-Mansoori explained that the venture market provides promising companies with many advantages as it allows them to diversify financing options through access to the capital market, improving the company's position and brand, and fair valuation of its shares, in addition to providing liquidity to shareholders, the founding family and minority shareholders.
He added: “The venture market is characterized by its easy listing requirements and suitable for promising companies that have fewer resources and accumulated experience and relatively limited and recent performance records compared to those listed in the main market. Especially since the requirements of investor relations and corporate governance conditions required in this market are easy and more flexible compared to those in the main market, while maintaining the minimum disclosure requirements set by globally regulated financial markets”.
For his part, Mr. Abdulaziz Nasser Al-Emadi, Director of Listing Department at the Qatar Stock Exchange, expressed his welcome for the listing of “Mekdam Holding Group” on the venture market, and his confidence that a number of other companies will join in the coming period, explaining that it is required for companies to join this market that Its issued capital shall not be less than 2 million riyals, and the number of its shareholders shall not be less than 20 upon the application for listing, who own at least 10% of its capital.
Mr. Al Emadi pointed out that the launch of the new market and the listing of two companies in it so far, was the result of the strategic initiatives and intensive efforts undertaken by the Stock Exchange during the past years to develop the Qatari market, in addition to continuous communication with the business sector in the country in order to identify its needs and provide services and incentives for transformation and listing on the market”.
It is worth noting that Mekdam Holding Group was established in March 2018, with an authorized and issued capital of 50 million Qatari riyals as a limited liability company, and then turned into a public joint stock company pursuant to Minister of Commerce and Industry Resolution No. (45) of 2021 issued on 30/6/2021, with 100% fully paid up capital. The most important objectives of Mekdam Holding Company are to provide comprehensive integrated services in the field of information technology and communications.