{"id":614190,"date":"2024-01-29T00:00:00","date_gmt":"2024-01-29T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/29\/egx-eyes-more-ipos-more-liquidity-and-more-markets-in-2024-strategy\/"},"modified":"2024-01-29T00:00:00","modified_gmt":"2024-01-29T00:00:00","slug":"egx-eyes-more-ipos-more-liquidity-and-more-markets-in-2024-strategy","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/29\/egx-eyes-more-ipos-more-liquidity-and-more-markets-in-2024-strategy\/","title":{"rendered":"EGX eyes more IPOs, more liquidity, and more markets in 2024 strategy"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>The bourse has big plans for 2024:<\/strong>The Egyptian Stock Exchange is out with its <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/1\/1816.pdf\" style=\"\" rel=\"noopener\">development<\/a><a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/1\/1816.pdf\" style=\"\" rel=\"noopener\">strategy (pdf)<\/a> for the current year, laying out a laundry list of changes and reforms to overhaul trading, add more companies, and increase liquidity. The EGX had an uneventful IPO market last year, with only TAQA Arabia <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/41d67e8b-4427-475c-b038-6a7b19bbba31\" style=\"\" rel=\"noopener\">going public<\/a>, as more companies put their listing off on the back of economic headwinds. The blue-chip EGX30 index gained around 66% last year, most of the gains can be attributed to investors piling into the stock market to hedge against the devaluation of the EGP. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">IPO INCENTIVES-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Fresh IPO incentives: <\/strong>The exchange plans to hold discussions with the Financial Regulatory Authority (FRA) and the Finance Ministry to grant tax incentives for a limited period to companies that offer at least 20% of their shares on the EGX in an IPO \u2014 with a specific focus on companies that export their products or locally manufacture products that are otherwise imported. The bourse also wants to encourage shareholders of listed companies to offer up additional shares on the market.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A better organized privatization program:<\/strong> The bourse plans on categorizing state-owned companies slated for an IPO into clear segments based on either their activities or target investors. The move aims to give a promotional edge to these companies when they are offered up to potential investors.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">CAPITAL + INVESTMENT REQUIREMENT-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>SMEs will have a limited stay at Tamayuz: <\/strong>The exchange wants to place a cap on SMEs' stay on the Tamayuz index and oblige them to submit a plan mapping out how they are going to raise their capital within 3-5 years to the EGP 100 mn required to be eligible to switch to the main market. In addition, SMEs will have to meet a minimum capital requirement of EGP 25 mn to be listed on Tamayuz in the first place.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Facilitating capital increases for listed companies: <\/strong>The bourse wants to streamline the process of increasing capital for listed companies and trim the capital subscription period to ten days.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>More investment from state institutions? <\/strong>The bourse wants to increase the minimum investment that special funds and institutions like Egypt Post, the Endowments Ministry, the Investor Protection Fund, and Social Security and Pensions Authority are required to invest in securities. The exchange wants to tip the balance in favor of stocks, and not just fixed-income securities.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">MOC ORDERS-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>MOC orders coming our way? <\/strong>The exchange plans to introduce market-on-close (MOC) orders in a bid to catch up with global trading practices. MOC orders allow traders to have their orders executed at the closing price.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">NEW MARKETS-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>EGX wants to attract new investor segments: <\/strong>A sharia-compliant index and exchange-traded funds, a voluntary carbon market, a real estate exchange, and a derivatives market are all in the works. The strategy doesn\u2019t give us the launch dates for any of the indices.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">MORE DIGITALIZATION-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The EGX plans to double down on digital transformation <\/strong>as it eyes to launch e-KYC (know your customer) protocols and digital onboarding. It also wants to <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6ca80ad4-c748-4a29-a49c-dab1190ea468\" style=\"\" rel=\"noopener\">finalize<\/a> an agreement with an international tech solutions provider that will launch the EGX\u2019s new e-disclosure system that uses the eXtensible Business Reporting Language (XBRL).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax incentives could be in the pipeline for companies willing to IPO at least a 20% stake<\/p>\n","protected":false},"author":1,"featured_media":614191,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7279],"tags":[68,72,183,2337,2073],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-614190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spotlight","tag-egx","tag-enterpriseam","tag-fintech","tag-islamic-finance","tag-spotlight","wpautop","entry"],"acf":{"mongo_id":"7c1b58c9-ec03-4ae8-92ac-6520de132369","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/1\/1968.jpg","photo_position":"above","homepage_title":"","full_issue_title":"The Egyptian Stock Exchange eyes more IPOs, more liquidity, and more markets in its 2024 strategy","related_issue":[614176],"teaser":"Tax incentives could be in the pipeline for companies willing to IPO at least a 20% stake","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/1\/.af005aa8-20d3-4df0-a802-9486dca24991.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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REMEMBER-\u2026","rel":"","context":"In &quot;IPO&quot;","block_context":{"text":"IPO","link":"https:\/\/enterpriseam.com\/egypt\/category\/business\/ipo-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/9\/265.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":568627,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/29\/real-estate-firm-emerald-to-debut-on-stock-exchange-in-10-days\/","url_meta":{"origin":614190,"position":1},"title":"Real estate firm Emerald to debut on stock exchange in \u201c10 days\u201d","author":"enterpriseam admin","date":"29 January 2020","format":false,"excerpt":"IPO WATCH- Emerald set to become Egypt\u2019s first IPO of 2020 in 10 days -Omran: Real estate investment firm Emerald will make its EGX debut \u201cwithin 10 days,\u201d making it this year\u2019s first IPO, Financial Regulatory Authority Chairman Mohamed Omran said, according to the local press. EGX boss Mohamed Farid\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":590646,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/30\/mohamed-farid-aramco-has-no-direct-impact-on-egx\/","url_meta":{"origin":614190,"position":2},"title":"Mohamed Farid: Aramco has no direct impact on EGX","author":"enterpriseam admin","date":"30 December 2019","format":false,"excerpt":"Saudi Aramco\u2019s IPO has had no direct impact on the EGX, exchange boss Mohamed Faridsaid at a symposium organized by Youm7 to discuss raising listings on the bourse. Aramco had only an indirect impact by changing companies\u2019 relative weight in global market indices such as the MSCI Emerging Markets Index.\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/9\/Mohamed-Farid-EGX-1600.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":555027,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/29\/will-the-great-ipo-rush-of-2021-spill-over-into-next-year\/","url_meta":{"origin":614190,"position":3},"title":"Will the Great IPO Rush of 2021 spill over into next year?","author":"enterpriseam admin","date":"29 November 2021","format":false,"excerpt":"The record IPO rush could soon dwindle down: After 2021 panned out as the biggest year for IPOs on record, a confluence of factors could be bringing the boom to an end. As central banks around the world scale back stimulus and look to hike interest rates, the surplus liquidity\u2026","rel":"","context":"In &quot;Capital markets&quot;","block_context":{"text":"Capital markets","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/capital-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/11\/252.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":591614,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/11\/upcoming-ipos-of-egypts-bdc-e-finance-will-be-a-boon-for-egx-liquidity\/","url_meta":{"origin":614190,"position":4},"title":"Upcoming IPOs of Egypt\u2019s BdC, e-Finance will be a boon for EGX liquidity","author":"enterpriseam admin","date":"11 December 2019","format":false,"excerpt":"The upcoming IPOs of state-owned Banque du Caire (BdC) and e-Finance will be a boon for liquidity on the EGX, Bloomberg says. BdC, one of the country\u2019s largest banks, is expected to attract investors from beyond the region, including from \u201cmainstream global emerging market funds,\u201d Tellimer\u2019s head of equity strategy\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/12\/443.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597718,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/02\/tawfik-hhd-to-ipo-in-4q2019-or-seek-help-from-strategic-investors\/","url_meta":{"origin":614190,"position":5},"title":"Tawfik: HHD to IPO in 4Q2019 or seek help from strategic investors","author":"enterpriseam admin","date":"2 May 2019","format":false,"excerpt":"IPO WATCH- Stake in Heliopolis Housing could be sold to a strategic investor: The Public Enterprises Ministry is working with the government\u2019s IPO committee to decide the fate of Heliopolis Company for Housing and Development (HHD) after it was dropped from the lineup of companies in the first wave of\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/2\/329.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/614190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=614190"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/614190\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/614176"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/614191"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=614190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=614190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=614190"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=614190"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=614190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}