The Egyptian Exchange, the country’s stock market, has announced it will reduce the minimum number of shares floated in an initial public offering (IPO).

Companies will be able to float as little as 5 per cent of shares, as long as this stock market capitalisation is above £E100m ($13m).

Smaller companies will still have to list 15 per cent of shares.

The average stock market capitalisation on the Egyptian Exchange is £E98m.

Emaar Misr, the local subsidiary of Dubai property developer Emaar is set to list just 13 per cent of its shares in a planned IPO.

The exchange will also change how it set its benchmark index EGX30, to look at trading activity and liquidity, and introduce a new EGX50

This is to better comply with international standards and successful experiences, and respond to the dynamism of the market.

The announcement follows a decision to freeze the implementation of a capital gains tax on the exchange for two years.