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The Financial Supervisory Authority amends the listing rules to receive the offerings of major companies on the stock exchange


The Board of Directors of the Financial Supervisory Authority approved an amendment to some provisions of the rules for listing and delisting securities in the stock market in preparation for receiving major proposals for a number of projects with liquidity and huge assets expected to be witnessed by the Egyptian Stock Exchange during the coming period.

 

Dr. Mohamed Omran, Chairman of the Financial Supervisory Authority, said that the rules of listing in the Egyptian Stock Exchange have set a minimum percentage of the shares to be offered and the percentage of free-traded shares, and that if these two standards are applied to major companies whose capitals may exceed tens or hundreds of billions, the matter will require financial values It is huge 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 had taken the initiative to facilitate the listing of companies and entities with large assets to encourage them to list their shares and to contribute to enhancing and revitalizing the liquidity rates in the Egyptian Stock Exchange, as it made an amendment to some provisions of the rules for listing and delisting securities on the Egyptian Stock Exchange by creating 1% of the value of the market capital It is freely traded as a new alternative to the value of the shares offered, corresponding to the minimum number of shares to be offered.

 

In addition to introducing another criterion for the value of free-traded shares at a rate of 0.5% of the value of the free-traded market capital, corresponding to the minimum number of free-traded shares in those companies, without addressing specific percentages of the company’s shares if these criteria are met to suit the huge capital it enjoys. Big companies.

 

Omran indicated that the state had 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, contributes to attracting new investors, and creates a state of great recovery in the stock market. This will have a positive impact on the Egyptian economy.

 

It is worth noting that the rules for listing and delisting securities in the Egyptian Stock Exchange are the legal framework regulating the controls and procedures for listing and continuing the listing and delisting of securities on the stock exchange, pursuant to the provisions of Article (16) of the Capital Market Law, as these rules regulate all matters related to companies and entities wishing to list their securities. In the stock exchange, whether Egyptian or foreign, starting with clarifying the conditions required for listing the securities of these companies and entities, the procedures to be followed in this regard, and the conditions for registration with the Authority, passing through the provision of some of its obligations during the period of its listing in the stock exchange, foremost of which comes the disclosures that must be It must abide by them, the requirements of governance and the protection of minority rights, as well as the provisions of dealing on treasury shares, and the controls for adjusting the capital, ending with defining the cases and controls for delisting the company’s securities, whether the write-off is voluntary or compulsory.

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