Qatar has been witnessing increased interests from the corporate sector to seek listing on its bourse in view of the “tangible” benefits from going public.
“Collectively, we are seeing more interest in listing than has been the case for a number of years. We believe that you will see a growing number of case studies that will showcase the benefits of having access to the public markets,” Qatar Stock Exchange (QSE) chief executive Rashid bin Ali al-Mansoori told an event ‘“Going Public: Readiness and Success”, jointly held by QSE and Pillsbury Law Firm.
The new and ongoing discussions with family and private companies in Qatar confirmed increased interest in the concept of becoming a public shareholding company and being listed on QSE, according to the QSE listing director Abdulaziz al-Emadi.
He said the benefits that the companies may expect through a QSE listing include continuity of ownership, access to capital and liquidity and a transparent valuation for shareholders, in addition to benefiting from professional executive management and increased organisational disciplines which contribute to improved planning and decision-making.
Recently, Qatar Financial Center chief executive Yousuf Mohamed al-Jaida said QFC is aiming to account for at least 5% of the market capitalisation of the QSE through the listing of its entities on the local bourse.
Highlighting that a time would come when more private companies would start seeing the “tangible” benefits of listing, once their businesses develop, grow and take on new challenges; al-Mansoori however urged the companies not to see the first day of trading as the end of the process but to work hard to maximise the benefits of listing through proper practices which follow and which are as important as the listing process itself.
QSE had last year introduced a single-window system for smooth and speedier initial public offerings and follow-on issues with a special listing committee, comprising members of the QSE and the Qatar Financial Market Authority, looking into all the aspects of listing and trading.
Stressing that the most successful companies in the world, including those here in the region are those that are publicly listed, he said creating a publicly listed vehicle with permanent capital and professional executive management but still with the protection for the family, has to be an option.”
David Decker, chairman of Pillsbury Law Firm, said Qatar is a promising market and that its legal systems are highly developed.
“Pillsbury is committed in partnership with QSE to continue to participate in the development of capital markets in Qatar and to provide leading legal services for listed companies or those intending to be listed,” according to Ahmed Anani, managing partner of Pillsbury Law Firm in the Middle East.
There is a growing interest in QSE from foreign investors given what QSE represents as a safe market for investment that grants good return on investment, he added.