SME Stock – Qatar- QSE venture market propsects getting brighter as two more listings expected
(MENAFN – Gulf Times) The prospects for the Qatar Stock Exchange’s (QSE) venture market, which on Tuesday saw the advent of the first entity, appears to be getting brighter with it expecting one or two more companies this year.
The QSE, which comes under the emerging market tag of the international index compilers, will soon embark on promotional campaigns to showcase its alternative capital access route for the small and medium enterprises (SMEs) through QEVM.
“We are very positive on the prospects of QEVM. We hope to see at least one or two more this year,” QSE chief executive Rashid bin Ali al-Mansoori said in a reply to a query from Gulf Times after the virtual listing of Al Faleh Educational Holding Company in the QEVM.
The bourse is launching a promotional campaign and the marketing department of the bourse has been given the mandate to target the SMEs, he said, adding the Qatar Development Bank or QDB would also assist in the promotion of the country’s capital market landscape.
The QDB has been playing a pivotal role in supporting the QEVM through assisting the SMEs to transform into public shareholding companies, providing them with the required and consultative assistance.
The QDB had entered into a memorandum of understanding (MoU) with the QSE in 2017 whereby the development institution would assist the proposed SMES with the fees payable to listing advisers and other costs associated with the listing.
The companies listed on the QEVM will pay a flat fee of QR50,000 per annum, the bourse said in its website.
The country’s SME development has been gathering pace, especially after 2017, and many entities within the sector are at present in a stage of expansion, thus calling for diversified source of funds.
The QEVM would give SME owners an opportunity to be listed in the bourse in accordance with lighter and flexible regulations. 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 QSE launched the QEVM, providing a listing and trading venue for SMEs that do not fulfill listing requirement of the main market. The QEVM provides an alternative route to market for the SME’s that need the access to capital.
The QSE put the amended criteria in place to provide an additional route to market for companies who sought to list without all the resource requirements and costs associated with the main market.
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.
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