By: Amr Adel
Dubai - Decypha: The Egyptian Exchange (EGX) is working on listing 10 companies this year, the Chairman of the Egyptian Exchange (EGX), Mohamed Omran, told Decypha.
The move will mark the largest number of initial public offerings (IPOs) EGX has seen in 10 years, after seeing five listings in 2016.
The new offerings will come from 14 companies that were listed in EGX in the last two years and were not open to public subscription, Omran added in an interview on the sidelines of the Arab IPO Summit 2017 in Dubai.
The chairman explained that there are a number of factors supporting the new IPOs this year, including the improvement in prices, higher liquidity levels, and the positive optimistic sentiment towards the country’s recent economic reforms. In addition, the stock market saw a recovery in trade activity, as traded volumes tripled since the pound flotation.
One of the highlights Omran shared with Decypha is the expected listing of Banque du Caire's in the first half of 2017. The move marks the first IPO for a public bank and will be the largest in EGX history. Banque du Caire is the first step in the Egyptian government's plans to list public companies, while the exact details of the plan have not yet been determined, the government plans to list companies from the petrochemical and electricity sectors, Omran told Decypha.
On a similar note, after Obour Land, and the awaited MM Group IPO, another company is expected to be listed soon in the Nile Exchange (Nilex).
When asked about new instruments entering the Egyptian market, Omran pointed to Sukuk, which requires a legislative amendment, besides other tools, such as bonds that need to be activated, and index funds, noting that the market is in need for deeper investments, and more energetic trade activity more than it needs new instruments.
"Work is currently undergoing to launch real estate funds [...] a request for the first real estate fund in Egypt has been presented to the Capital Market Authority (CMA), which could represent an addition to the market," he explained.
On another note,EGX absorbed the effects of imposing the stamp duty tax on the capital market, which are usually seen after the decision’s announcement and not just beginning its application.
The chairman of EGX concluded his interview by stating that the Egyptian economy should see more economic reforms to help reach a better investment climate in 2017, higher real growth rates, and to attract more foreign investments.
