Mekdam Holding Group will be transferred to the main market from the venture market, effective from January 2, 2023. The Qatar Stock Exchange (QSE) disclosed this in a communique after Mekdam received the nod from the Qatar Financial Market Authority in this regard. The company will be listed under the consumer goods and services sector, which already has 10 constituents under it.
As a result, the number of the listed companies in the main market will become 48. Mekdam Holding Group will become the first company to be transferred from the venture market to the main market.
At present, the venture market has two constituents - Mekdam Holding and Al Faleh Educational Holding.
The group operates as a comprehensive service and solution provider of ICT (information, communication and technology), mechanical and electrical engineering, and operation and maintenance services. Net profit stood at QR21.18mn on revenues of QR363.08mn at the end of nine-month period ended in September 2022.
"This transfer is in accordance with the new listing and offering rulebook which came into force recently starting April 1, 2021. The new rulebook includes a set of new rules and procedures that aim to attract more companies and provide more alternatives for companies seeking to list in the market," the communique said.
Mekdam's name and the symbol (MKDM) and the International Identification Number (ISIN) will remain unchanged. It will be traded in the same manner like those on the main market. Moreover, the reference price for the company's shares on Monday, January 2, 2023, will be determined based on the closing price of its shares in the trading session on Thursday, December 29, 2022.
The QSE will cancel all the orders on Mekdam shares in the order book after the trading session on Thursday, December 29, 2022. Therefore, the responsibility for re-entering the cancelled orders would be on the brokerage firms, the bourse spokesman said.
The company was established as a limited liability company under Commercial Registration No. 115142 under the name Mekdam Holding Group on March 29, 2018. It was converted into a Qatari public shareholding company, according to the Ministry of Commerce and Industry Decision No UU/2021/73 dated January 14, 2021.
The company's capital amounted to QR68mn divided into 68mn common shares with nominal value of each share of QR1.
Mekdam Holding Group was able to sign new contracts with a total value of QR1.22bn, which exceeded the annual target for 2022. The board was also briefed on the total value of the contracts being implemented, which amounted to QR2.09bn, while the value of the remaining works stood at QR1.49bn.
With respect to the sales proposals, the total offers submitted and being negotiated with customers amounted to about QR2.04bn. The expected success rate, according to historical indicators, ranges from 20-30%. The customer retention rate was around 90%.
Mekdam management believes that these indicators are the key factors in building revenue expectations, future net profits and enhancing the value of shareholders' equity.
