OREANDA-NEWS.The CEO of Qatar Stock Exchange Rashid Bin Ali Al Mansoori today urged private companies to transfer into public shareholding companies and list on the Qatar Stock Exchange citing many advantages of this change on the future of those companies including continuity, organisational efficiencies, diversification of funding options and optimal financial status.

Opening a seminar held in Doha by the QSE in partnership with Price Waterhouse Coopers and Latham & Watkins, Mr. Al Mansoori told representatives of a cross-section of private companies in Qatar:   “What we would like to achieve this morning is not to suggest to you all that the only way forward right now is to list but that for some of you there will come a time when the benefits of being listed become more tangible as your businesses develop, grow and take on new challenges.That being the case we hope to help you understand the process better and dispel some of the myths surrounding listing”.

“We are pleased to be hosting this event alongside our partners, PwC and Latham & Watkins who are both recognised experts in the area of listing as well as long-time supporters of the business community here in Qatar who in various ways are assisting you, the leaders of Qatar’s current and future corporate champions”, he added. 

Noting that IPOs in the Middle East have kept a low profile in recent years, Mr. Al Mansoori said that “In Qatar, as with most GCC markets, IPO volume has been reduced significantly; before Mesaieed’s listing early this year the last two deals we have seen were for Vodafone and Mazaya each in their own way quite unique”.  “ Being the second largest stock exchange in the MENA and Gulf region, this does not meet our ambitions, therefore, we are already working alongside a number of private companies and their advisors in preparing themselves to come to market, both for the Main Market and the QE Venture Market”, he elaborated.  

“Family and private companies account for more than 80% of the non hydro carbon sector in our. We believe that you will see a growing number of case studies that will showcase the benefits of having access to the public markets”, he added.

He cited many advantages and benefits for companies when transformed to public shareholding and listed on the stock market , including  continuity, liquidity and valuation, organizational efficiencies, diversification of funding options and optimizing financial status. “These reasons are likely to form the backbone of any listing decision”, Mr. Al Mansoori said.

 He also touched on some discouraging concerns like dilution, loss of control, corporate governance rules and transparency and disclosure requirements.

“Many companies, and not just in the GCC, see the first day of trading as the end of the process; for your company to maximise the benefits of listing this should not be the case and in fact practices once listed are as important the listing process itself”, he said.

From the time you decide to go public, depending on your state of ‘readiness’ it may take 12-18 months before being listed.  That timeline is not all execution as often it takes some months to get all board members aligned before the company evaluation and re-organisation can be started in advance of the actual execution phase.

Concluding his opening remarks Mr. Al Mansoori said: “let me highlight that as you think about the most successful companies in the world, including those here in the region many of the names that come to mind are still likely to be those that are publicly listed; if your legacy is to be a business still thriving in not ten years but one hundred years creating a publicly listed vehicle with permanent capital, professional executive management but still with the protection for your family has to be an option”.