The Egyptian Exchange (EGX) submitted proposed amendments of the listing and delisting rules of EGX to Financial Regulatory Authority (FRA) to be studied and implement with the provisions of the Capital Market Law after its approval.
This step came after Dr. Mohamed Farid, Executive Chairman of EGX’s meeting with the Prime Minister Dr. Mostafa Madbouly, and number of entrepreneurs led by Swvl Company, Dr. Rania Al-Mashat, Minister of International Cooperation, Counselor Mohamed Abdel Wahab, CEO of the General Authority for Investment (GAFI).
Dr. Farid, Executive Chairman of EGX, said that the proposed amendments come in response to the changes in the business models of SMEs, stressing that if approved by the Financial Regulatory Authority (FRA), it could open new growth opportunities for them. It would allow them to expand through the Egyptian capital market, increase the volume of their businesses, and contribute more to the growth of the Egyptian economy.
The proposed amendments included new article, (8 (bis)), which regulates the process of shares listing of the Egyptian companies with the purpose of acquisition, meeting international standard, provided that the capital increases are invested in savings vessels with a fixed return and set away for the recipients of subscriptions until acquisition. In case of no acquisitions for two years from the registration date, the amount will be refunded to investors in accordance with section (9) of this Article. This is in case the company has a contract with the investment managers licensed by (FRA) working with direct investment or venture capital.
The suggested amendments also include article 44, to facilitate the acquisitions of listed companies on unlisted ones must fully comply with governance standards and achieve a multiple growth rate.
