Proposal to ease listing of state-owned companies in the UK could prove fruitful for Egypt

Speaking of IPOs of state-owned companies: The United Kingdom is pulling out the stops to attract listings of government corporations. The UK’s financial regulator has proposed the relaxation of rules to make the listing of state-backed companies easier, Reuters reports. The move comes as the London Stock Exchange continues to push into the Middle East and North Africa in search of new listings. The Financial Conduct Authority’s proposal comes as the UK looks to capitalize on the upcoming IPO of Aramco. Egypt, which is readying its IPO program for state-owned companies, could stand to benefit as its option to list shares in companies such as Enppi and Banque du Caire in the UK gets easier. The Ismail government has yet to say whether a listing on the London Stock Exchange is in the cards. The proposal has received praise from financial lobbyists, as the City looks to cash in by making their advanced trading platforms easier to access for sovereign listings. Other investors and corporate governance groups counter that loosening some of the rules may lower the quality of companies on its stock exchange and leave shareholders with less protection when things go wrong.