5 companies to be listed on EGX by end of 2018

CAIRO - 5 September 2018: Chairman of the Egyptian Exchange (EGX) Mohamed Farid announced during the Euromoney Conference that around five companies will be listed in the Egyptian stock market by the end of the year.

Farid added that the yields of Initial public offerings (IPO) reached LE 2 billion in 2016, and witnessed an increase in 2017, recording LE 4 billion.

He referred to the non-Egyptian investors participation in these IPOs by saying that it marked a percentage of 56.

Chairman of EGX said that technical reforms are taking their way to the indices of the stock markets to restructure and improve them. 

He added that the number of companies listed in EGX are not comparable with what already exists in the business world, so the bourse is working to provide institutional incentives to increase the number of listed companies.

He further aimed to have young investors in the market, noting that EGX has the same number of investors from 15 years ago.

Getting more young investors involved in EGX can happen through improving the educational aspect; teaching students how to open a bank account, know more about insurance products and how to trade are key. Ten years from now,EGX will have a significant number of young investors.

According to Farid, the Saudi plan to be listed in MSCI will be challenging to EGX and the investors in it as they will be targeted to invest there.

On another note, Farid talked about treasury bills and bonds saying that they are a part of the money market and what the global financial market is facing nowadays will turn them into challenges and opportunities.

“Global financial problems will affects all sectors,” he noted.

Regarding the global economic crisis, he said that the Egyptian Economy is reacting positively to the reforms and measures released recently, including the investment law and bankruptcy law.