Cairo – Mubasher: The Egyptian Financial Regulatory Authority (FRA) is considering a request by a private-sector company, affiliated to a foreign firm, to float its shares on the Egyptian Exchange (EGX) in the coming period.
The initial public offering (IPO) is expected to have a valuation of more than EGP 1 billion, the FRA’s Chairman, Mohamed Omran, said in a virtual press conference held on Tuesday.
He revealed that IPO procedures for private-sector companies are implemented in a shorter time than those of public-sector companies, noting that foreign investors are flocking to the Egyptian market, especially after reporting higher trading value.
In 2020, the trading value jumped by 68% to EGP 689.6 billion from EGP 409.7 billion in 2019.
The value of traded stocks soared by 37% to EGP 311.6 billion from EGP 226.8 billion, while the value of traded bonds leapt by 107% to EGP 378 billion from EGP 182.9 billion.
The EGX reported varied performance as the main EGX30 index fell by 22% YoY to 10,854 points, while the small- and mid-cap EGX70 EWI and EGX100 EWI surged by 69% and 42%, respectively.
The market cap value dropped by 8.2% to EGP 649.9 billion in 2020 from EGP 708.3 billion a year earlier.