Listing on Egyptian exchange (EGX) | KPMG | EG

Listing on Egyptian exchange (EGX)

Listing on Egyptian exchange (EGX)

Listing on Egyptian exchange (EGX)

Regulatory requirements

Listing shares on EGX should have the following rules:

  1. The law of Capital Market that governs the EGX
  2. Requirements for eligibility to be obtained before listing the securities
  3. Additional disclosure obligations for the content of the documents delivered

Some initial listing requirements are as follows:

At least 5 million shares with at least an amount of 50 million Egyptian pounds as a fully paid-up capital The number of shareholders to be at least 300 and a minimum of 5 percent free float of its share capital Ongoing compliance to be adhered to in addition to the previously mentioned one The responsibility of following up continually on the listing requirements is for the listing committee.

 Dual-secondary listings: 

Foreign securities could have a dual primary listing in Egypt in addition to listing in a recognised exchange and should also apply the requirements for eligibility as mentioned above.
Moreover, foreign exchange should be under the supervision of the authority
similar to the authorities of the EFSA.

For the Egyptian issued depository receipts for offshore issuers could be registered which common in practice Trade in securities: 

Listed or non-listed shares are under monitoring of EGX. The licenced member firm only has the right to issue orders on the EGX and through its rules, trades may be carried out through protected transactions under the rules and procedures of EGX approved by EFSA.

The chairperson of EGX has the right to transfer any cases to the trading committee for the decision of giving protection, examples of these cases are connected party deals and banks exercising a pledge or affiliated and subsidiary companies.

The trading in non-listed shares offered to the public should be done through brokers licenced by EFSA. There is no requirement regarding trading in shares with pre-emption rights. Exceptions can be included in the articles of establishing the company.

time and create new jobs and revenue. The megaproject represents a watershed moment for the country’s economic aspirations and reinforces Egypt’s role as a major hub for global commerce and trade. In addition, the new Suez Canal Area Development Project (SCZone) will have a transformative impact on Egypt’s economy as a whole. Launched in August 2014, SCZone creates an industrial development corridor along the canal.

It is expected to support nearly 1 million new jobs and 2 million new residents as well as turn the region into an innovative, integrated value-added services centre with an international reach.

  • Conduit for global trade

The 145-year old Suez Canal is one of the world’s most critical waterways. The Suez Canal reduces maritime supply chain routes by nearly 43 percent, or over 4,800 nautical miles. Nearly 10 percent of all global commerce and 416,000 tons of cargo pass through the canal every year.

The revenue hit $3.26 billion during the first seven months of FY14/15, with 10,399 vessels carrying 586.2 million tons of cargo traversing the canal. August 2014 saw the highest monthly revenue in the canal’s history, at $510 million. The project to add a second 45-mile channel to the canal has involved dredging by six international firms, including Illinois’ Great Lakes Dredge and Dock Company.

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