Mekdam Holding Group – which operates through its subsidiaries in the technology, security and maintenance sectors – will soon become the second entity to get listed on the junior bourse of the Qatar Stock Exchange (QSE).
“The Qatar Financial Market Authority approved the listing of Mekdam Group after completing the procedures of converting to a public joint stock company,” QSE chief executive Rashid bin Ali al-Mansoori said in a tweet.
The company, which was assigned ‘gcBBB-’ Gulf regional rating by Standard & Poor’s in March this year, will be included in the market for small and medium enterprises, or the venture market (QEVM).
The listing of Mekdam Group, whose subsidiaries are Mekdam Technology, Mekdam Technical Services and Mekdam Cams, comes after Al Faleh Educational Holding Company got listed on the QEVM last month.
The group has generated revenues of QR168.7mn and Ebitda or earnings before interest, taxes, depreciation and amortisation of QR26.8mn in 2020 (as per S&P calculations).
Mekdam Technology accounted for 55% of 2020 group revenue and 42% of Ebitda; Mekdam Technical Services (28% and 24%) and Mekdam Cams (8% and 28%).
“The company benefits from strong partnerships with international solution providers, good cash flow visibility, and a relatively flexible cost structure,” S&P said, expecting the group’s flexible cost structure, with 70%-75% comprising variable costs, and continued top-line growth to support stable margins.
At a recently held webinar, al-Mansoori had said strenuous efforts are being made to enhance the listings by raising awareness of the advantages of becoming public.
In January 2012, the bourse established a separate stand-alone QEVM, stipulating eased entry norms as well as lower capital base and shareholders, but made mandatory liquidity provider and perpetual services of listing adviser.
The QEVM is aimed at small and medium sized family and private companies and provides them with an access to capital market and enables them diversify their source of financing, achieve the sustainability, growth and expansion.
The QEVM will follow the same continuous trading pattern as the main market. The tick sizes for the QEVM equities will be as same as those for the main market.
The stock quotes of the QEVM will be broadcasted on a separate market watch at QSE website and independent from the main market screens. Trading volumes and other relevant data for the QEVM will be reported on the QSE website on a daily basis.
The companies eligible to join the QEVM should have an issued capital not below QR2mn, and number of shareholders not less than 20 who own no less than 10% of its capital upon the listing.
The recently released Qatar Capital Market 2020 report, prepared by the Qatar Financial Center, had said the QEVM serves as a dedicated stock exchange for SME listings, which, despite possessing possibly shorter track records and higher risk profiles, allows them to access funding through the equity capital market.
QSE chief executive Rashid bin Ali al-Mansoori.
