The Clap
FRA officials have agreed to amend some of the rules for listing securities on the EGX.
Why?
The decision comes in preparation for receiving major IPOs for a number of companies with high liquidity and huge assets that the EGX is expected to witness in the coming period.
Who is affected🤷
Companies looking to go public must offer at least 1% of the EGX’s total free-float market cap, instead of a minimum number of the company’s total shares.
Companies will also be required to have a free-float market cap of at least 0.5% of the EGX’s total free-float market cap.
Dr. Omran said the two previous standards created a costly process for companies whose capital exceeded tens of billions of EGP. That led to several companies’ reluctance to move forward with the listing process in the past.
Why is this important🤔
Dr. Omran said the Egyptian state had announced mid-last month its plan to offer the New Administrative Capital Company on the EGX during the next two years.
A listing that could potentially double the EGX’s market cap, contribute to attracting new investors & create a state of recovery for the EGX.
