The Clap
According to Asharq, the FRA wants to encourage companies to increase the number of shares in circulation in the EGX. In addition to that, they want to attract new companies to be listed.
The Deets
Dr. Mohammed Omran, executive chairman of the FRA, said that the FRA is trying to increase the minimum percentage that companies can list (5%) in order to increase liquidity in the market.
The FRA is also trying to increase the corporate issuance of bonds from EGP 25 billion to EGP 80 billion by 2026. This will come through the introduction of new financial instruments like sustainability bonds and carbon emissions certificates.
Background
The FRA had announced its intentions to increase the market cap to EGP 1.6 trillion, through the listing of governmental and non-governmental entities. That number is likely to increase to EGP 2.6 trillion if the new administrative capital company is listed as well.
Other strategies
Dr. Mohamed Omran had proposed a strategy of forming holding companies that hold shares in giant national projects and then listing these holding companies.
FRA looking to develop the capital market 💪
