Egyptian Stock Exchange aims at supporting more IPOs and capital increases
At its second Investors Summit, officials want EGX to be the most efficient instrument to finance public enterprises.The conference was announced in late May. Mohammad Omran, Chairman of the Egyptian stock exchange, promised then a major action "to facilitate companies' access to funding, enabling them to meet domestic and international investors."
Indeed, a dialogue is underway between the government and the Egyptian Exchange to find mechanisms to make the Egyptian financial market an instrument to mobilize more rapidly foreign investors on public projects. In the private sector, several companies, including the local property sector, are also exploring the possibilities of raising capital on the financial market. Already, between May 2014 and May 2015, twenty new companies were able to mobilize a total amount of EP 5 billion (656 million USD).
The consultation has not fuelled the market that fell 1.7% between 1st and 12th of June. Measured in USD, the performance is even poorer, weighing on international attractiveness. However, the government has decided to postpone for two years the 10% tax on capital gains, thus minimizing the risk of loss and encouraging subscriptions from investors.