EGX’s chairman calls firms to diversify finance through capital market

CAIRO – 31 March 2018: Chairman of the Egyptian Exchange (EGX) Mohamed Farid called on companies in different sectors to diversify their sources of finance, especially through the capital market.

This came during the opening of Thursday’s session during the start of the trading on BPE Holding for Financial Investments’ shares.

Farid explained that the stock market is a strategic financing platform for direct investment companies in a sustainable manner.

He added that they play an important role in mobilizing the necessary savings to finance companies’ expansion in various sectors.

Companies’ expansion will be reflected in achieving strong economic growth in a sustainable manner which supports the economic and social development plan of the government, Farid clarified.

The majority of research confirmed that the performance of companies in the non-financial services sector, especially the indirect investment restricted in the stock exchange, is much better than unrestricted, for the ease of obtaining the capital necessary to finance its expansions and acquisitions, Farid said.

The opening session was attended by Chairman of BPE investments Hazem Barakat, Chairman of the Egyptian Stock Exchange Mohamed Farid, his Deputy Mohsen Adel, Regional Manager of Amwal Al Khaleej Kareem Saadaah, Investment Manager at BBI Investments Omar al-Labaan, and Chairman of Sigma Investment Bank Ahmad Marwan.

Trading on BPE Holding for Financial Investments’ shares started on Thursday March 29, in the Egyptian Exchange (EGX).

BPE Investments’ initial public offering (IPO) was oversubscribed 84.4 times by the end of Monday’s session through the sale of 422 million shares out of five million shares offered to the public offering.

The Egyptian Exchange set the period from March 29 to April 29 to open the market for the purchase of BPE Holding shares within the mechanism of stock price stability.