Qatar Stock Exchange calls for active corporate-investor engagement

21/11/2017 07:46 AST

The Qatar Stock Exchange (QSE) has stressed the need for listed companies adopting a better corporate disclosures and transparency to attract investors. The top-level officials of the companies should keep their doors wide open to investors to enhance value of their companies, QSE Chief Executive Officer Rashid Ali Al Mansoori said yesterday.

Speaking to a section of media, on the sidelines of 8th annual investor relations conference here, Al Mansoori said: “ Companies need to go out and get in touch with investors across the board. They should make sure their doors are wide open to investors,” he said.

The QSE Chief expressed hope that the local market would see more IPOs going forward. The two ETFs will hit the market once the companies complete their respective seed funding process, which the market can expect at any time soon, he said.

Al Mansoori’s call for the companies to bolster their IR engagement comes in the wake of a section fund managers expressing concerns over the alleged disinclination of certain listed companies in meeting them and sharing information. These fund managers believe that Qatar has far to go to improve transparency and corporate disclosures to appropriate levels. “For investors, to understand companies and quantify opportunities and risks, it is imperative that company management teams are accessible and provide relevant information”, an investment banker told The Peninsula in a recent interview.

Al Mansoori said that investors really need to understand a company before putting their money. In case the investors are not getting the kind of information they are looking for, the money will go to somewhere else.

With the regional market becoming so competitive, it is pertinent for the companies to improve their quality of the corporate disclosures and bringing transparency and engage more effectively with the investors, he said.

“To ensure they are getting a better valuation, the companies should be transparent, put out their information on public domain and open their doors for investors and analysts.” Its true most of the companies are communicating with their investors, but they need to do more...there is a trend that the companies, after get listed, go weak on IR.

“ The market needs fuel….We would like to remind the companies the importance of investor relations after listing. Perhaps, it may be time for many of them to update their system enabling to be more active in communicating with the investors.”

QSE’s message to the companies at this critical time is that they need to stay ahead. Keep participate in QSE’s events and do more and develop the tools that they used to communicate with their investors and see the value of their companies are enhanced.

On QSE’ post-siege performance, Al Mansoori said: “The average volume and value are same as a year ago. But we need to do more.”

Al Mansoori said the bourse is holding talks with several countries with respect to dual listing. “We are working on dual listing with different countries.”

Earlier, addressing the event, Al Mansoori said QSE will continue to take the initiative to impress upon all market participants the importance that IR serves.

“Good IR is about effective communications between a company and its shareholders, both in good times but just as importantly in bad times. Not enough of our listed companies have the necessary comprehensive IR strategies, including best practice in place and are actively engaged with investors. Our listed companies must be equipped at all times to respond to a crisis when it happens in line with its current strategy.”

The Peninsula