Nominal value of a share of listed firms, ETFs become QR1 from QR10

The nominal value of shares of the listed companies and exchange traded funds in Qatar has now become QR1 per unit instead of the earlier QR10 a piece, with Doha fully implementing the stock split; which has the potential to trigger higher free float but with unchanged capitalisation.The Qatar Financial Market Authority (QFMA) had laid down a detailed timetable for the implementation of the stock split, a process that ought to attract more retail investors and enhance liquidity in the system in the days to come.
The stock split was undertaken with a scheduled process in co-ordination with the Qatar Stock Exchange, the Qatar Central Securities Depository and other parties concerned over 21 trading sessions.
The stock split results in an enhanced free float, thereby increasing liquidity but leaving the paid-up capital intact. Certain underlying stocks are expected to generate higher demand, which is also expected to enhance the global appeal of the Qatar Stock Exchange, which is now in the “emerging” status according to various global index compilers.
The banks and financial services sector, which comprises 13 listed constituents, was the first to implement the stock split between June 9 and June 16.
The consumer goods and services sector, which comprises nine constituents, had June 17 to June 20 window to implement the stock split, which has the potential to gauge the right intrinsic value as more float will help market forces to determine true price.
The industrials sector, which consists of nine listed companies, had June 23 to June 26 for the implementation of the stock split.
The insurance sector, which has five constituents, had a two-day window to implement the stock split, starting June 27 until June 30.
The real estate sector’s window opened on July 1 and closed the next day. The sector has four listed constituents. The telecom and transport sectors, which have two and three constituents respectively, had implemented the stock split early this month.
The Masraf Al Rayan and Doha Bank sponsored ETFs and the latest listed entrant, Qatar Aluminium Manufacturing were the last entities to implement the stock split.
The QSE listed companies had held extraordinary meetings of their general assemblies, in parallel with their ordinary annual meetings, in order to amend their articles of association in preparation for the enforcement of stock split