DOHA: Decks are finally cleared for allowing small and medium enterprises (SMEs) to float initial public offerings (IPOs) to raise funds from the public and institutions and seek listing on a parallel market on the Qatari bourse (Qatar Exchange).
The regulator of the bourse, the Qatar Financial Markets Authority (QFMA), said in a statement yesterday that it has finalised the draft of rules to regulate IPO flotation and listing of SMEs on a dedicated market on the QE.
The draft of the rules has been prepared following a thorough study conducted by the Authority to assess the needs of these companies and to identify the means and mechanisms that can be used to help them grow and develop through listing on capital markets.
The study covered benchmarking with regional and international experiences in respect of IPO and listing similar companies on various capital markets as well as their monitoring and supervising framework to assure protection of the shareholders' interests.
The draft rules are being presented for consultation with the concerned stakeholders, which is expected to come into force soon after approval.
The draft IPO and listing rules complete the various regulatory initiatives that the Authority is currently undertaking to support the objectives of the capital market in the state and increase its role in driving the cogs of economic development in Qatar, the QFMA statement said.
The project is in line with the decision issued by the Supreme Council for Economic and Investment Affairs, and is thought of as a leading step forward in achieving the goals of Qatar National Vision 2030.
The CEO of QFMA, Nasser Ahmed Al Shaibi, was quoted as saying in the statement: "The project of listing small and medium enterprises on the capital market aims to support these companies by providing them access to the adequate financing to help them grow, expand and develop. This goal can be achieved by listing these businesses on a dedicated market in Qatar Exchange, under flexible regulations that fit the structural and legal situation of these enterprises, while maintaining a strong level of supervision to protect the interests of shareholders."
© The Peninsula 2011
