The Qatar Stock Exchange (QSE), which seeks to be one of the most important platforms for economic diversification and privatisation in the country, on Tuesday asked the private companies to seek listing as it ensured liquidity provision for the existing and potential companies.
"The process of listing private companies in the stock market will help to increase organisational strength since initial public offering, or IPO, can reduce the risks of relying on the founding shareholders and expand the investors base supporting the company's growth and investments," Abdulaziz al-Emadi, director of listing, at the QSE told a workshop “Equity Capital Markets in Qatar – Challenges and Opportunities”.
He highlighted the readiness of the QSE to provide all possible assistance for the companies to overcome the obstacles hindering them from becoming publicly listed.
The QSE has already introduced the single-window system for the companies wishing to go public through IPO. Baladna was the latest entrant in the QSE through an IPO.
Stressing that it represents a fertile environment for investments as it is one of the most important platforms for the economic diversification and privatisation in Qatar as well as a platform for capital allocation and capital formation; an official said the QSE ensures liquidity provision to existing and potential companies listed on the main and small and medium enterprises or venture market.
The Qatar Financial Markets Authority had approved the liquidity provision scheme that can be carried out by the financial services firms, which are members of the QSE. This scheme will enable these firms to submit constant quotes for the sale or purchase of a particular security to increase its liquidity as per the controls and conditions set forth in the liquidity provider agreement.
Highlighting the importance of listing as a way to achieve sustainability, the QSE said "one of our priorities at QSE is to contribute to the development of a diversified, competitive and sustainable national economy."
The workshop, which was organised in association with Addleshaw Goddard, looked at listing challenges and opportunities as well as dual listings, liquidity issues, regulatory requirements and IPOs environment in Qatar.
Equity capital markets experts discussed challenges facing new issuers, ways to manoeuvre them, and the opportunities presented by current market conditions and ways to capitalise on them. They also discussed the IPO process in Qatar, the valuation issues and the introduction of book building; managing liquidity of shares; governance issues and new global trends; mergers and acquisitions and corporate debts.
