EGX reduces red tape for new listings

In an effort to attract new companies to the Egyptian Stock Exchange, the documentation required of companies who want to list will be cut in half, officials say.

EGX Chairman Mohamed Omran said the decision, issued Wednesday, comes in response to requests to simplify listing procedures. 

The new regulations ease requirements that previously required companies to document capital developments in extensive detail. Among the documents no longer required are minutes of stock holder and director meetings approving capital increases and copies of reports by committees formed to evaluate the in-kind portion of mergers or capital increases.

Instead, companies will only be required to submit proof of official documentation and approval of capital decisions, including notations in the commercial registrar, auditor’s certificates and Egyptian Financial Supervisory Authority approvals.

The new regulations are effective immediately for all large, medium or small companies seeking to list on the exchange for the first time.

In May, Arabian Cement was the first company since 2010 to make an initial public offering on the Egyptian Exchange, and a flurry of other IPOs is expected to follow. Technology and development company Masr El-Salam and food manufactures Edita and Domty are expected to follow in the coming months.