Investor relations key to boost transparency, stock value, says QE

The Qatar Exchange has asked listed companies to strengthen their investor relations to not only improve transparency and meet the growing needs of domestic and international investors but to boost the value of their stocks.

“We want to see our listed companies committed to ongoing investor relations activities and improving the standards of the information in the market,” QE chief executive Andre Went told the Middle East Investor Relations (ME-IR) meeting in Doha in the presence of Adel al-Mutawa, executive director of Qatar Telecom and chairman of ME-IR Society Qatar Chapter.

The ME-IR meeting discussed a range of “hot topics” including practical steps to achieve good governance, the power of IR in tailoring the company message, promoting analyst coverage, building an IR team and practical guidance on how to create and maintain an effective IR website.

Went said firms need to know and understand their shareholders to meet the growing requirements of local and international investors.

“The ultimate benefit is a more transparent company communication process, an increased investor pool and for some the opportunity to increase the share price through this greater understanding,” he said.

Went said QE has been engaged in a survey (which is not yet completed) to gauge the status of investor relations in the listed companies. Based on the responses received so far - 60% of all respondents - 65% of the listed companies have a dedicated IR department, with another 20% in the process of establishing one.

Only 40% of the companies organise analysts’ calls with investment banks quarterly, while 85% participates in road shows, he added.

The bourse is keen to promote an increased breadth in a listed company’s coverage by analysts in Doha, but a first step in that process is getting those entities more comfortable with the process of talking to analysts and the disclosure that comes with it.

“We have been working with the ME–IR Society for a number of years and now as a founding member we look forward to supporting their efforts further to develop the IR profession here in Qatar for the benefit of overall market transparency,” he said.