Dr. Mohamed Omran, Chairman of the Egyptian Exchange (EGX) said the stock market management has no intention to suspend trading of shares of Telecom Egypt (TE) on the back of the recommendation issued by State Commissioners concerning the cancellation of the company’s IPO that was carried out in 2005.
A reported issued by the State Commissioners suggested invalidating the company’s listing due to legal irregularities surrounding its historical floatation. The report pointed out that the IPO’s valuation method was incorrect, and that several violations were made with regards to the laws and regulations intended to widen the private sector’s ownership of public companies’ shares.
According to Omran, the recommendation is not a binding legal verdict and, therefore, will not result it share suspension.