Cairo plans second bourse
A new stock exchange for small and mid-cap enterprises will be launched in late October, according to Investment Minister Mahmoud Mohieldin.
Companies will be able to list on the new bourse without having to meet the listing requirements of the Cairo and Alexandria Stock Exchanges. However, the government has denied that this means regulations will be weaker.
Speaking at the Euromoney Egypt Conference 2007, Mohieldin said: 'We are not going to be lenient as far as information disclosure, transparency, discipline and corporate governance issues are going to be dealt with.
'It is going to be a very disciplined market, but we are going to be flexible when it comes to the minimum capital of the registered firms.
'While the average is £E 30 million ($5.3 million) plus in the mainstream market, this one is going to be £E 500,000-20 million ($89,000-3.6 million).'
Transaction costs will also be lower, with the government cutting fees for dealing and trading on the exchange.
Up to 14 companies have qualified to register for the new exchange to date (MEED 23:3:07).
'If they do that they can have better access to credit,' he said. 'It will not just be raising capital from equity, but if they are going to be applying the rules of proper governance - being exposed, having their statements checked - they could have better funding from the banking system.'
www.meed.com/companiesmarkets
A new stock exchange for small and mid-cap enterprises will be launched in late October, according to Investment Minister Mahmoud Mohieldin.
Companies will be able to list on the new bourse without having to meet the listing requirements of the Cairo and Alexandria Stock Exchanges. However, the government has denied that this means regulations will be weaker. Speaking at the Euromoney Egypt Conference 2007, Mohieldin said: 'We are not going to be lenient as far as information disclosure, transparency, discipline and corporate governance issues are going to be dealt with. 'It is going to be a very disciplined market, but we are going to be flexible when it comes to the minimum capital of the registered firms. 'While the average is £E 30 million ($5.3 million) plus in the mainstream market, this one is going to be £E 500,000-20 million ($89,000-3.6 million).' Transaction costs will also be lower, with the government cutting fees for dealing and trading on the exchange. Up to 14 companies have qualified to register for the new exchange to date (MEED 23:3:07). 'If they do that they can have better access to credit,' he said. 'It will not just be raising capital from equity, but if they are going to be applying the rules of proper governance - being exposed, having their statements checked - they could have better funding from the banking system.' www.meed.com/companiesmarketsThis content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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