The Board of Directors of the Egyptian Financial Supervisory Authority has agreed to amend some provisions of the rules for listing and delisting securities on the Egyptian Stock Exchange in preparation for receiving major proposals for a number of projects with liquidity and huge assets expected to witness The Egyptian Stock Exchange during the coming period.
Mohamed Omran, head of the Financial Supervisory Authority, said that the rules of listing in the Egyptian Stock Exchange set a minimum percentage of the shares to be offered and the percentage of freely traded shares, and if these two standards are applied to companies The largest companies whose capitals may exceed tens or hundreds of billions, it will require huge financial values for the offering in a way that may hinder or lead to its reluctance to move forward towards the listing process and then put its shares for trading.
He added that the Authority's Board of Directors took the initiative to facilitate the listing of companies and entities with large assets to encourage them to list their shares, thus contributing to enhancing and activating liquidity rates in the Egyptian Stock Exchange.
He referred to an amendment to some provisions of the rules for listing and delisting securities on the Egyptian Stock Exchange by introducing 1% of the value of the freely circulated market capital as a new alternative to the value of the offered shares corresponding to the minimum of shares to be offered.
Another criterion was introduced for the value of freely traded shares at 0.5% of the market capitalization value of the freely traded shares corresponding to the minimum number of freely traded shares in those companies, without addressing Specific percentages of the company's shares if these criteria are met to suit the huge capital enjoyed by major companies.
Omran said that the state announced in the middle of last month its plan to offer the New Administrative Capital Company on the Egyptian Stock Exchange during the next two years, in a measure that doubles the value of market capital, and contributes to attracting New investors, and creates a great recovery in the Egyptian Stock Exchange, which will reflect positively on the Egyptian economy.
Yasser Al-Masry, managing director of the Arab African Company for Securities, said that the decision is positive for the capital market, and attracts large-sized companies to offer on the stock exchange, which is reflected on the market capital. As well as attracting new investors to the capital market.