FRA amends rules for listing securities on EGX prior to government offering program

BY

-

Tue, 07 Feb 2023 - 01:00 GMT

BY

Tue, 07 Feb 2023 - 01:00 GMT

FILE- Employees in the EGX following performance of the trading session

FILE- Employees in the EGX following performance of the trading session

CAIRO - 7 February 2023: Egypt’s Financial Regulatory Authority (FRA) decided to introduce several amendments to the rules for listing securities on the Egyptian Stock Exchange (EGX).
 
The rules provide for organizing and shortening the time periods for a number of procedures necessary to complete the capital increases of companies whose securities are listed, while providing flexibility for companies to increase their capital in stages.
 
This decision comes amid anticipation of the announcement of the government offering program, consisting of 20 companies.
 
According to the decision, an increase in the capital will be based on a mandate from the assembly to the board of directors of the company to complete such an increase, with a maximum limit of the issued capital and without exceeding the ownership rights, in order to help it quickly obtain the financing required to develop its business and implement its expansions through the capital market. This aims to enhance the role played by the stock market as a platform for providing the necessary financing for various economic entities in support of the national economy.
 
 
The FRA aims to provide an enabling environment for the completion of all work related to non-banking financial activities, and in light of the approval of the President to issue a state ownership document that enhances the role of private investments.
 
The amendments include reducing the time frame required to complete some of the requirements for capital increases and until closing the offering door, as follows:
 
1. Determine the period of time that it takes to send the Board of Directors and the disclosure report for approval to the FRA to be two working days after the meeting of the Board, instead of not specifying it before the amendment.
 
2. Determining the period from publishing the disclosure report to inviting the assembly to take the cash increase decision to be 7 days instead of 21 days.
 
3. Determining the time period from publishing the announcement inviting old shareholders to the offering until opening the door for offering and trading the offering rights separately from the shares, to be a minimum of 7 days instead of 14 days, compared to an average of 19 days for the same procedure before the amendment, which results in reducing the period for completing this procedure by saving 12 days .
 
 

Comments

0

Leave a Comment

Be Social