FRA issues new regulations for listing on the EGX: The Financial Regulatory Authority (FRA) has approved a number of regulations for firms looking to delist from the Egyptian stock exchange, as well as new regulations for special purpose acquisition companies (SPACs), according to a statement.

New delisting rules: Should a company decide to delist voluntarily from the bourse, the value of shares owned by the affected shareholders and/or those objecting to the delisting can now be decided based on the fair value of the delisted shares. The value of the shares will now be determined based on the highest of the following values:

  • The fair value — determined by an independent financial advisor registered with the authority;
  • The average value of the shares over the three-month period before company’s general assembly is invited to meet to make a decision on delisting;
  • The highest closing price in the month before the company’s general assembly is invited to meet to make a decision on delisting.

ALSO- SPACs will be allowed to open temporary accounts for acquisitions: SPACs will be allowed to hold temporary accounts for the purpose of conducting acquisitions. SPACs will have two years from their listing date to complete an acquisition, which can be a full buyout, a controlling stake, or an absolute majority in the target company’s capital or voting rights. Failure to do so would mean that the SPAC would either reduce its capital by the value of shares listed or re-offer the same shares to qualified investors.

What’s a SPAC again? A special purpose acquisition company is a type of shell company used by investors to acquire firms. SPACs raise money from the public in an IPO and then use the proceeds to merge with or acquire an appropriate company. Check out our explainer for more on how SPACs work.

Our first local SPAC could be on the way soon: Impact investor Catalyst Partners applied inJuly for a SPAC license, as it looks to set up its own special purpose acquisition company, dubbed Catalyst Partners Middle East (CPME), which will target fintech firms and NBFS players, with plans to acquire three firms upon receiving the license.

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