In a move that reflects the Egyptian Exchange (EGX)’ commitment to accelerate the capital increase and listing procedures in order to support the Egyptian economy and to help businesses obtain financing, EGX listing committee met for 3 consecutive days during one week for the first time in the Egyptian Exchange history to check the capital increase and listing applications submitted by a number of companies.
The 3 committees witnessed a set of important decisions, in the forefront was Orascom Construction approval for listing and IPO, its market capitalization on its first trading day was about LE 11.5 Billion, and it’s the first foreign company to be listed using the dual-listing system for shares from 20 years ago. Also the listing committee has approved to list EDITA food industries with about LE 2.1 Billion. Furthermore it’s approved to allow Pioneers Holding for Financial Investments to proceed in the capital increase procedures by the fair value with an amount estimated to be almost LE 3 Billion.
On the other hand it has been approved to list Emaar Misr in the Egyptian market with a capital of more than LE 873 Million. Moreover EGX is reviewing the listing application for the 2 other companies with total capital exceeding LE 205 Million.
"We are accelerating our pace to allow greater number of companies to get access to funding " mentioning Dr. Mohammad Omran, EGX chairman, "We took a decision to hold the listing committee whenever there was a need for it, and even if it’s required to hold it more than once a week, in order to reduce the time required for listing and capital increase processes to the lowest possible level, as per our perception to the importance of supporting the Egyptian economy with every possible way during those important times. "
Omran said "we deal with the private sector thinking and we will continue to simplify procedures and to reduce their time". EGX wants to be a model for easiness and simplicity of procedures in dealing with investors, stressing that access to finance is one of the most important factors upon which the international institutions are assessing the investment climate in any country.
Omran declared that the companies’ activity in listing and increasing capital means directly that companies have expansion and growth opportunities and need financing to cover those opportunities, which implies that the economy has begun to move steadily and that the recovery has already begun.
EGX has agreed to list 4 companies during the first 2 months in the current year, with capitals approaching of LE 2 Billion. It noted in its statement that the activity witnessed by the market with regard to listing and capital increases is a continuation of the outstanding capital market performance during 2014, in addition to the successive amendments to the listing rules in order to simplify procedures for companies.
FTSE Mondo Visione Exchanges Index:
Within An Active Week Before The Economic Conference... EGX Accelerate Its Pace To Finish The Companies' Capital Increase & Listing Procedures
Date 11/03/2015