E-Finance Chairman Ibrahim Sarhan said that dual listing is definitely in the company’s future plans.
What is dual listing🤷♀️ Dual listing is the listing of a company’s shares on a second exchange in addition to its primary exchange.
More details🧐 The company is exploring its dual listing options, which it plans to pursue as soon as requirements of dual-listing are met. Major requirements include a minimum company value, & reaching & maintaining a certain level of growth multiples.
The same three investment banks that were responsible for E-Finance’s IPO, Renaissance Capital, CI Capital (CICH), & Al Ahly Pharos, are in charge of the company’s dual listing venture.
Why is this important🤔 Dual listing allows a company to increase its access to capital & makes its shares more liquid. It also allows for its shares to trade for longer periods if the second exchange is in a different time zone to the primary exchange.
However, dual listing is only worth it when its benefits outweigh its costs, which include listing expenses, additional legal & financial resources, & extra attention from management.