Egyptian Exchange (EGX) Board approves a proposal to exempt companies from listing fees
Egyptian Exchange (EGX) Board approves a proposal to exempt companies from listing fees and submit a proposal to EFSA concerning a mechanism for large volume deals
The Egyptian Exchange (EGX) board approved exemption of companies from the listing fees of the first time. This exemption is provided that companies finished all listing and offering procedures within a period not exceeding three months from 1/7/2012 to 30/9/2012. EGX listing sector will facilitate the documentation and procedural cycle for listing and public offering. This decision came as a part of EGX marketing policy aiming to attract new companies to list on the stock market.
On the other hand, EGX board discussed setting a separate trading mechanism for executing large volume deals and to set clear standards to define large deals that focus mainly on the existence of a minimum level that represents 2% of the voting rights or a value of LE 2 million of the transaction, whichever is less.
This mechanism helps to activate and facilitate trading, specially for enterprises and to achieve higher probabilities of executing the entire quantity required. Also it contributes to increase the execution speed, reduces trading cost and to increase trading volumes which is positively reflected on increasing the market efficiency.