• Dr. Omran: Another six-month deadline for companies that have been listed on the Egyptian Stock Exchange and do not offer its shares
Within the framework of FRA’s efforts to achieve the third objective of its comprehensive strategy for developing non-banking financial sector (2018-2022), namely “Enhancing national competitiveness and attractiveness for Foreign Investments”, Dr. Mohammed Omran – FRA’s Chairman revealed that FRA’s Board approved several procedures included amendments to listing and delisting on the Stock Exchange. The said amendments will stimulate Egyptian and foreign companies to move towards listing on the Egyptian Stock Exchange.
FRA’s Chairman said that the Board has taken a regulatory action to face the economic effects arising from financial markets’ decline during the second half of 2018 and the consequent reluctance of many investors from emerging markets. He added that FRA extended the deadline granted to companies that were listed on the Egyptian Stock Exchange but did not offer its shares for another six months. The deadline ends on 30 September 2019 instead of 31 March this year. The company will be granted this period on condition that it obtains the Egyptian Stock Exchange’s approval in the light of a time plan submitted by the company to the Stock Exchange no later than 30 April 2019.
Dr. Omran stated that FRA’s Board decision no. 32 of 2019 regarding amending listing and delisting rules was issued to maintain the attractiveness of the Egyptian market for domestic and foreign investments and to confirm the depth of the Egyptian economy in order to absorb negative aspects that occurred in emerging markets.
FRA’s Chairman emphasized that these amendments allow listing of holding companies – Egyptian – newly established “for the purpose of owning existing companies if they meet the listing conditions and financial standards.
In addition to facilitating and encouraging the companies resulted from restructuring, whether by merger or division to be listed on the Stock Exchange, provided that listing conditions and financial standards shall be met by merged companies.
FRA’s Chairman also pointed out that the amendments allowed the foreign companies which rights of ownership, assets and revenues are 50% or more to be listed on the Egyptian Stock Exchange without being listed at a foreign exchange.