Mekdam Holding Group (Mekdam), which will start trading on the venture market of the Qatar Stock Exchange from next week, has kept the reference price at QR5.5 a share with a face value of QR1.
This has been disclosed by the marked operations department of the bourse, ahead of the listing of the company, which provides comprehensive integrated services in the field of information and communication technology.
The shares of Mekdam, which will be listed with the symbol “MKDM”, have no static threshold for the first day of trading but will be allowed to fluctuate by 10% up and down starting from the second day of trading.
It becomes the second company to be listed on QSE Venture Market (QEVM) dedicated to small and medium enterprises or SMEs. The company is being listed on using the direct listing option and the maximum holding for the non-Qatari investors has been now pegged at 49%.
Mekdam was established in March 2018 as a private company with limited liabilities and authorised and issued capital of QR50mn. It was transferred into a public shareholding entity by the Ministry of Commerce and Industry resolution No. 45 for 2021 with a capital 100% fully paid by its founders.
There will be no change in the timing of the trading session on the listing day. Brokerage firms will be allowed to enter buy and sell orders on the company's shares for the pre-open period, as is usual at 9am.
Mekdam will be traded in the same manner as those on the main market in terms of order types, corporate actions and settlement/clearing arrangements.
The pricing of Mekdam shares is exactly the same as the pricing mechanism of the stocks listed on the main market. The orders on the QEVM are executed through the brokers licensed by Qatar Financial Market Authority.
The QEVM will follow the same continuous trading pattern as the main market. The tick sizes for the QEVM equities will be the same as those for the main market.
The QEVM provides SME’s with many advantages as it allows them to diversify sources of funding through access to permanent equity capital whilst offering liquidity to financial, family or minority shareholders as well as visibility.
The QEVM is characterised by the flexibility of the listing requirements which suit smaller entrepreneurial companies with a limited track record and fewer resources to meet the heightened investor relations and corporate governance practices demanded in the main market.
The launch of QEVM came as a result of the strategic initiatives and intense efforts made by the QSE over the past years to develop Qatar’s capital market through continuous consultations with private and family-owned companies to identify their needs and offer them suitable solutions and incentives for listing in the market.