Cairo – Mubasher: The Egyptian Exchange (EGX) has reached out to the European Bank for Reconstruction and Development (EBRD) for technical assistance to restructure the small- and medium-sized enterprises (SMEs) platform, NILEX.
Accordingly, the European lender is looking to engage a consulting firm to propose a restructuring plan for the Egyptian bourse’s SME platform, according to an official statement.
The selected consultant will be tasked to review the SME platform and ensure the optimal proposed set-up of it, the EBRD indicated.
The consultant is likely to count on the recommendations on international standards and previous practices of the SME financing platforms in other countries, taking into account relevant international or local regulations, the bank said.
The restructuring process is expected to start in December for an estimated duration of 6 months at a total cost of EUR 180,000, excluding value-added tax (VAT), according to the statement.
The bank added that the contract will be financed by the EBRD’s shareholder special fund.
Almost 32 companies have been listed on NILEX in 11 years since it was founded in 2007, the EBRD said.
The restructuring plan aims to support SMEs growth and boost their competitiveness and contribution to economic growth.
“The platform has, to date, a total market capitalisation of $60 million and an average daily trading volume of USD 160,000, with almost no institutional or foreign investments,” the statement highlighted.
The EBRD noted that total capital hikes undertaken by NILEX-listed companies did not exceed $15 million.
By 1:00 pm Cairo time, the NILEX index shed 0.38% to 462 points.
