Chairman of EGX says market can help fund government-owned companies growth
- Private companies increasingly active on EGX
- Lost opportunity for state firms
Mohamed Omran, chairman of the Egyptian Exchange (EGX), has called for more government-owned companies to use the stock market to raise additional capital.
He said that in more than 10 years, no state-backed firm has used the exchange to raise capital.
The government should use it as the private sector [does], Omran told delegates at the Egypt Economic Development Conference in Sharm el-Sheikh on 15 March.
He said companies did not need to sell existing shares but issue additional shares, noting the political sensitivity surrounding the concept of selling state company shares to the private sector.
Omran said the EGX has been performing well. During 2014, US-based MSCIs index for Egypt almost doubled compared with mid-2013, when former president Mohamed Mursi was removed from power.
The message is very clear and we have a capital market that is functioning well, said Omran. That is what international investors need.
The pipeline for private companies looking to raise initial public offerings in Egypt is growing.
The local Orascom Construction completed its dual listing on both the EGX and the Nasdaq Dubai exchange on 11 March.
The local EFG Hermes is the joint global coordinator and joint bookrunner for the secondary offering for snack producer Edita on the EGX.
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