Ezdan Holding Group has been temporarily removed from the Qatar Stock Exchange indices and its weight will be proportionately redistributed to the remaining constituents of the Qatar Index and the Al Rayan Islamic Index.
A decision regarding this was taken by the index committee of the QSE in view of the company’s extraordinary general assembly deciding to transform it from a public shareholding company to a private joint stock company.
“The Index Committee decided that the effective date of the removal will be as of the closing of the trading session on May 29, after Qatar Financial Market Authority approval,” a QSE spokesman said.
The committee decision was based on the provision in the index methodology providing for the committee to make operational adjustments to the index on an “exceptional” basis if required in order to maintain a fair and orderly market and/or is in the best interest of the investors and/or for proper functioning of the markets, the spokesman said.
Ezdan has the biggest weighting in the QSE benchmark index after QNB and accounts for almost 10% of the MSCI Qatar Index. Major shareholders of mid-cap Ezdan Holding are Al Tadawul Holding Group, Waqf of Sheikh Thani A J al-Thani and Imtilak Trading and Contracting.
Ezdan Holding, the first entity this year to disclose delisting process, is planning to appoint evaluators to prepare a financial statement of the company’s assets, liabilities and approximate value, with a fair value per share as of April 30, 2017, to be presented to shareholders at a subsequent meeting.
Although the company has allowed up to 49% foreign ownership limit (FOL), the actual FOL was at 108.51mn or 4% of the free-float shares of 2.65bn (as on May 28, 2017), according to the QSE data.
