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EGX sees jump in capital increases to EGP10 bln in FY13/14

EGX sees jump in capital increases to EGP10 bln in FY13/14
The Egyptian Exchange (EGX) announced on Wednesday that the public offerings for capital increases rose significantly in the fiscal year 2013/2014, reaching “record levels at EGP 10 billion, which accounts for more than 8 times of the increases achieved during 2012/13.
EGX added that the first half of 2014 also witnessed a big increase in the public offerings which totaled EGP 5.5 billion. “This represents more than the total increases achieved during 2013, and more than 430 % from 2012 total increases,” according to the statement.
“The first half of 2014 witnessed the first public offering since the January 2011 Revolution, and the offering high coverage ratio reflects investors’ positive estimates about the economic performance,” said EGX chairman Mohammed Omran.
Omran referred to Arabian Cement’s IPO, which took place in May and was 18.5 times oversubscribed. The volume of offered shares for sale totaled at 24.9 million, while the total purchasing requests reached 460.5 million shares.
The latest listing rules improvements, which simplified procedures and reduced the listing approval duration to 24 hours in some cases, also contributed to this progress which represents a positive evolution in EGX trading framework, added Omran.
The EGX chairman also noted that access to finance is one of the key tools used by international organizations in assessing the investment climate in any country. He anticipated that these steps will help improve the evaluation of Egypt in this regard, according to the statement.