The Information Technology Industry Development Authority "ITIDA" and The Egyptian Exchange “EGX” Signed a Memorandum of Understanding “MOU” as a mean of cooperation to support the IT industry companies, specially those interested in listing on SMEs market “NILEX”.
This MOU signed by Dr. Mohamed Omran, EGX Chairman and Eng. Yasser Qadi, “ITIDA" CEO aims to enhance cooperation between both parties to finance small and medium Egyptian enterprises specialized in telecommunications and information technology industry which are essential components of the economic and social development and also provides the opportunity for investors to diversify their investments in the stock market.
This is the first initiative of its kind for cooperation between both parties in providing technical support and advise for SMEs to continue and grow in the market.
EGX team displays the financing benefits and advantages of listing in NILEX for IT companies recorded in ITIDA database, and stimulate NILEX Nominated Advisors to provide advisory services and assistance for those companies in determining problems facing them and to solve them to continue in the market.
From the other side, ITIDA supports SMEs working in IT industry through nominated advisors that advises and assists companies in the listing process as well as training their officers to be in compliance with listing and disclosure rules.
NILEX Exchange was established in 2007, it is the first market to support and develop SMEs in the MENA region and to provide them with the required finance needed for growth, to increase their competitiveness and therefore providing more job opportunities.
NILEX targets promising companies from the countries of the region regardless their industry or area including family-owned businesses wishing to transform to shareholding companies with large investors base.
It’s worth mentioning that EGX launched its new premises at Smart Village in 12 April 2012 in attendance of Mr. Momtaz El Saeed, finance minister; Dr. Mohamed Salem, Telecommunication minister; Dr. Ashraf El Sharkawi, EFSA chairman and Dr. Mohamed Omran, EGX chairman.
The exchange main goal is to support promising economic sectors in getting the required finance and to attract foreign and local investments for a fast growing sector such as the telecommunication and information technology, that in turn provides more job opportunities.
Listing in NILEX is performed through relaxed and flexible rules consistent with small and medium sized companies. The process started by selecting a nominated advisor to assist companies in listing and getting finance, as well as training its officers to be in compliance with listing and disclosure rules. Then the company in cooperation with the nominated advisor submit the listing application to EGX’ listed companies sector that investigate the listing application carefully and approve it. After approving it, the application is submitted to the listing committee for the final approval, and after this step the company is ready to be listed.
The conference that took place in Smart village aims to highlight the main supporting tools provided by ITIDA for the companies wishing to list in NILEX. Also the listing advantages will be presented such as financing, determining and enhancing the market value of the company which supports the company’s status with banks, suppliers and customers; also higher merging opportunities with similar companies to form more competitive entities locally or internationally. Furthermore shareholders rights are preserved and facilitating the exit process specially for family companies.
With that concern, Dr Mohamed Omran, EGX chairman, ensured that the exchange will display the financing benefits and advantages of listing in NILEX for IT companies recorded in ITIDA, and the Nominated Advisors will provide the required advisory services to assist those companies in determining and solving their financing problems to continue in the market.
Eng Yasser El Qadi said that SMEs companies are essential to the Egyptian economy and should be financed and supported to merge with larger entities which enhance IT industry and attract Arab and Foreign investments. Moreover The cooperation between ITIDA and The Egyptian Exchange aims to stimulate companies to increase their capital and to enter new markets which will be more profitable for them and will positively affect the economy as a whole.
It’s worth mentioning that SMEs have a significant role in The Egyptian economy, it contributes by 75 % of the economic growth and 80 % of the labor power, but they usually face financing problems when trying to expand or to reach new markets. Now there are about 20 SMEs companies from different sectors that are listed on NILEX. 3 of them are specialized in information technology and telecommunication which are: Pharaoh Tech for Control and Communication Systems, AL Moasher for Programming and Information Dissemination and Masria Card.
Currently there are 2 more information technology companies in the listing process.