Mubasher TV
Contact Us Advertising   العربية

Egypt's FRA allows SPAC listings

Egypt's FRA allows SPAC listings
Mohamed Omran, Chairman of Financial Regulatory Authority

Cairo – Mubasher:  The board of directors of the Egyptian Financial Regulatory Authority (FRA) approved a decision to allow the establishment and licensing of special purpose acquisition companies (SPACs) in accordance with the provisions of the Capital Market Law.

SPACs have become an attractive vehicle for many investors and sponsors that aim at raising capital in an initial public offering (IPO) for the sole purpose of acquiring or merging into startups, especially in the IT and digital technology sectors, the Chairman of the FRA, Mohamed Omran, said in a statement on Monday. 

The proceeds will be invested in banking accounts until the completion of the acquisition. In case an acquisition transaction is not executed within two years, the SPAC will be liquidated and the proceeds will be returned to shareholders.