The Venture Market of the Qatar Stock Exchange for small and medium-sized companies is expected to come into operation this year. The market will help small and medium enterprise (SMEs) firms to diversify their source of funding.
“The junior market (Venture Market) will be established soon this year, we have got approval for two companies,” Abdul Aziz Al Emadi, Listing Director at Qatar Stock Exchange told The Peninsula talking on the sideline of the event held yesterday to mark the listing of QLM shares on QSE.
He expressed optimism about more number of companies listing on the QSE this year.
Al Emadi said that the management of the stock exchange provides many facilities to all listed companies through one window to facilitate the listing of companies on the stock exchange, including Qatar Central Bank, Qatar Central Depository Company, the Ministry of Commerce and Industry and the Qatar Financial Markets Authority.
The Venture Market will be dedicated to SMEs who will by definition have a minimal track record and a higher risk profile but companies nonetheless who are growing and need access to capital.
According to Qatar Stock Exchange, companies on the QE Venture Market will trade on the same UTP infrastructure and benefit from the same regulatory safeguards as that afforded to Main Market companies but will be readily identifiable as a separate and dedicated marketplace.
This market serves as a dedicated stock exchange for small and medium enterprises listings, which despite possessing possibly shorter track records and higher risk profiles, allows them to access funding through the equity capital market.
Over time it is expected that Venture Market companies would graduate to the Main Market as they grow and develop the necessary track record.
