Wed, 29 Sep 2021 - 03:02 GMT
Wed, 29 Sep 2021 - 03:02 GMT
CAIRO – 29 September 2021:The Egyptian Exchange (EGX) signed Tuesday a Memorandum of Understanding (MoU) with the Egyptian Businessmen Association (EBA), to enhance cooperation and growth opportunities for EBA’s member companies through listing and offering in EGX.
The MoU was signed by Executive Chairman of the Egyptian Exchange (EGX), Mohamed Farid, and Chairman of the Egyptian Businessmen Association (EBA), Ali Eissa.
According to the EGX, the cooperation comes as part of the bourse’s plan to attract new companies, raise the awareness on listing process and its role in the growth of company’s business and supporting its growth opportunities through obtaining financing.
Ali Issa, Chairman of the Egyptian Businessmen Association (EBA) thanked EGX’s management for the fruitful and constructive cooperation for the benefit of member businesses.
He added that, the association has a large base of ambitious companies in various sectors looking for expansion opportunities and willing to know more about listing at EGX.
From her part, Reem El-Saadi, Regional Director of SMEs Financing and Development Program at the EBRD, said that the last period witnessed EGX’s inauguration of a comprehensive development plan for the SME’s market in cooperation with EBRD, with the aim of developing the capabilities of listed companies. The cooperation included financing listing cost with 60% to 70% as a mean of helping potential businesses to grow.
Farid added that the plan to develop the SMEs market inaugurated in cooperation with international partners and with the participation of various market parties aims to develop the capabilities of the market players and allow potential businesses who cannot get financing from other channels to grow and expand through EGX.
He elaborated on the axes of the reform plan; including the reevaluation of nominated advisors and reducing it from 33 to 8. The number of Nominated advisors increased to 15 currently. The current nominated advisors are qualifies, trained advisors through a comprehensive training program. Also the company applying to be a nominated advisor should conduct a presentation on its target number of companies they plan to list and should abide to meet this target.
Mohammed Farid elaborated on the second element in the development program through establishing a new department to promote listing. This department is dedicated to communicate with promising companies and explaining benefits of listing. Till now this department has 10 companies in the listing process.
He concluded by stressing on the SMEs development plan highlights the importance of; potential company contracting with a skilled nominated advisor and commits to provide research coverage and have a specialized investor relations representative, in addition to stimulating institutional demand by holding regular meetings with investment funds to clarify investment opportunities in the SMEs market.