DOHA: Qatar Stock Exchange (QSE) will launch the QE Venture Market (QEVM), which will provide a listing and trading venue for SME’s that do not fulfil listing requirement of the main market, a news release said.
The QEVM would give SME owners an opportunity of listing and trading in the bourse in accordance with lighter and flexible regulations, while giving further finance sources in order for them to grow and expand their businesses.
Rashid bin Ali Al Mansoori, CEO of the Qatar Stock Exchange, said: “The launch of the new market comes within the framework of QSE’s vision and strategy aimed at diversifying investment options and products available to individual and institutional investors.” He stressed QSE’s pioneering role in providing financing and expansion opportunities for growing Qatari SME’s, in line with Qatar National Vision 2030 and the State’s economic diversification policy.
Al-Mansoori explained that 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 characterized by the flexibility of the listing requirements which suit smaller entrepreneurial companies with a more limited track record and fewer resources to meet the heightened investor relations and corporate governance practices demanded in the Main Market, Al-Mansoori added.
Mr. Abdulaziz Nasser Al-Emadi, Director of QSE’s Listing Department, highlighted the value of the QEVM and indicated that the launch of the QEVM will coincide with the listing of the first SME on Qatar Stock Exchange. He also stressed his confidence that further companies will join the QEVM in the coming period. He also indicated that the companies eligible to join the QEVM should have an issued capital not below QR 2, and number of shareholders not less than 20 who own no less than 10% of its capital upon the listing.
The launch of the new market is the 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, Al-Emadi added.
Mr. Al-Mansoori praised the pivotal role played by the Qatar Financial Markets Authority (QFMA) in launching the QEVM through the development of a suitable and attractive regulatory environment and thanked them for their continuous support of QSE’s initiatives. He also thanked the Qatar Central Securities Depository Company for their active role in creating the appropriate environment for trading the stocks listed in QEVM.
Mr. Al-Mansoori also thanked the Qatar Development Bank (QDB) for their continuous cooperation and support aiming to assist SME’s to transform into public shareholding companies through offering them the required financial and consultative assistance, in line with the MoU signed between the QSE and the QDB to support the development of the QEVM and promote listing of SME’s in this market.
The stocks listed on the QEVM will be traded in the same manner as those on the main market in terms of order types, corporate actions and Settlement/ Clearing arrangements. Pricing of these securities is exactly the same as pricing mechanism of the stocks listed on the main market. Investors do not need to obtain new investor number to trade in the QEVM since no new investor numbers (NIN’s) are required to be issued for the investors who have already existing numbers. The orders in the QEVM are executed through the brokers licensed by QFMA.
The pricing of the shares of companies listed in the emerging companies’ market is exactly the same as the shares of companies listed in the main market. Listing & trading in the emerging market will also be the same as the investor number, and the investor will not need to extract a new investor number for whoever has an existing number, and orders are issued and executed in this market through licensed brokers.
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. https://www.qe.com.qa