Dr. Mohamed Omran, Chairman of the Egyptian Exchange (EGX) said the bourse is expected to approve the listings of 10 companies by the end of this year as confidence in the local economy grows.
In an interview for the Reuters Middle East Investment Summit, Omran said the exchange had approved the listing of four companies so far this year and expected that number to rise to ten by the end of 2014.
Growing activity in the stock market "is a very positive indicator that the Egyptian economy has started to recover,” he said.
"Companies are able to acquire, expand and invest to a greater extent in order to achieve profitability and growth. This will reflect on per-share earnings and in turn on prices in the market. The exchange and the economy can never be separated."
He added: "We have an economy that hungers for investments. The major economic projects that Egypt is currently working on will lift the dust off its economy.”
Omran revealed earlier on Sunday that the market’s management approved several weeks ago the listing of two new companies on EGX but delayed the move after realizing that some of these companies’ shareholders are involved in legal cases not settled yet.
There are no other final agreements to list other companies on EGX, Omran noted. He added that EGX approached several government and private companies to list their shares and officials in those companies welcomed the proposal but have not taken any serious steps yet in this regard.
The EGX management had reached advanced talks with Ministry of Awqaf (Endowment) on floating the ministry’s Hawamdia Contracting and Damanhour Carpets Co., according to the top official.
Meanwhile, Omran said the EGX listing committee will discuss this week the listing of the first ETFs company, adding that the actual listing will be carried out next week upon completing all documentation.
The company is expected to be added to EGX listed companies this week. Beltone will issue the IPO prospectus after obtaining the approval of the Egyptian Financial Supervisory Authority (EFSA), Omran told state-owned news agency MENA.
Mohamed had previously said that the Minister of Awqaf Mohamed Mokhtar Gomaa agreed in principle to study the offering of companies affiliated to the ministry for public subscription.
In an interview for the Reuters Middle East Investment Summit, Omran said the exchange had approved the listing of four companies so far this year and expected that number to rise to ten by the end of 2014.
Growing activity in the stock market "is a very positive indicator that the Egyptian economy has started to recover,” he said.
"Companies are able to acquire, expand and invest to a greater extent in order to achieve profitability and growth. This will reflect on per-share earnings and in turn on prices in the market. The exchange and the economy can never be separated."
He added: "We have an economy that hungers for investments. The major economic projects that Egypt is currently working on will lift the dust off its economy.”
Omran revealed earlier on Sunday that the market’s management approved several weeks ago the listing of two new companies on EGX but delayed the move after realizing that some of these companies’ shareholders are involved in legal cases not settled yet.
There are no other final agreements to list other companies on EGX, Omran noted. He added that EGX approached several government and private companies to list their shares and officials in those companies welcomed the proposal but have not taken any serious steps yet in this regard.
The EGX management had reached advanced talks with Ministry of Awqaf (Endowment) on floating the ministry’s Hawamdia Contracting and Damanhour Carpets Co., according to the top official.
Meanwhile, Omran said the EGX listing committee will discuss this week the listing of the first ETFs company, adding that the actual listing will be carried out next week upon completing all documentation.
The company is expected to be added to EGX listed companies this week. Beltone will issue the IPO prospectus after obtaining the approval of the Egyptian Financial Supervisory Authority (EFSA), Omran told state-owned news agency MENA.
Mohamed had previously said that the Minister of Awqaf Mohamed Mokhtar Gomaa agreed in principle to study the offering of companies affiliated to the ministry for public subscription.
Source:
Mubasher
