Listing companies in stock market makes them focus of investor interest: EGX chairman

CAIRO – 12 April 2021: Offering companies on the stock exchange helps them to grow achieve targets and make them the focus of international investors' attention, which contributes to increasing foreign and domestic investments, according to Chairman of the Egyptian Exchange (EGX) Mohamed Farid.

This came during a workshop organized by the Stock Exchange in coordination with the European Bank and the Federation of Eurasian Stock Exchanges, to familiarize companies with the requirements for registration

Farid said that the management of the Stock Exchange is working in coordination with companies to raise the degree of their commitment to the standards of governance and sustainability, especially in light of the growing interest of investment institutions in the shares of companies most adhering to the standards Governance and sustainability.

The activities of the first round of the workshop, which was held virtually, in line with the Egyptian state’s directions to diverge in order to save lives from "COVID-19", began last week, over a whole day, attended by leaders of the Egyptian Stock Exchange and representatives of the European Bank for Reconstruction and Development and the European Federation of Euroasian Exchanges.

The workshop gains its importance from the fact that it opens a direct, interactive dialogue that brings together, for the first time, parties related to the listing and offering process, as well as companies that have the desire and ability to transform into public companies through stock exchanges, due to the importance of this on their financial, operational and institutional performance and ensuring the continuity of corporate activity across generations of its management.

Representatives of 8 companies operating in different economic sectors participated in the workshop, which have the desire and ability to comply with the requirements of listing and offering in the stock exchange to complete their expansion plans. These companies are considered one of the outputs of the work of the "client relation management", which was developed by the Egyptian Exchange Administration to enhance the supply side of the Egyptian stock market.

Farid explained that the workshop was invested in pushing for the outputs of the "client relation management", the modern administration that was launched by the current management of the Egyptian Stock Exchange two years ago, and it is the companies database that was built during the last period and includes companies wishing to register and able to meet its requirements. That is in line with our growth, launch, survival and impact targets.

He stressed that raising the level of awareness among companies of the requirements of the process of listing and offering in the stock exchange is an integral and inseparable part of the stock exchange's comprehensive business strategy aimed at increasing the efficiency, depth and competitiveness of the Egyptian stock market, which is the value chain that includes the supply side by facilitating the work environment to attract strong companies that are able to grow according to sound standards and conditions.

During the workshop activities, representatives of the European Bank for Reconstruction and Development discussed the privileges available to public companies "listed on stock exchanges", including, but not limited to, the ability to access financing, raise the level of their creditworthiness, periodic evaluation, and the ability to attract foreign investment, its attractiveness to employees, the ability to transfer holdings, the ease of carrying out mergers and acquisitions, the presence of research coverage on its shares, etc.