FRA approves 3 companies’ listing on EGX with fair value exceeding EGP 4bn

Alyaa Stohy
3 Min Read

The Financial Regulatory Authority (FRA) has approved the listing of three companies on the Egyptian Exchange (EGX), according to FRA Chairperson Mohamed Omran. 

They were: Macro Group for Pharmaceuticals (Macro Capital), with a fair value of approximately EGP 3.5bn and free trading rate of 45.8%, and the Nahr El-Kheir Company for Development, Agricultural Investment and Environmental Services, with a fair value of up to EGP 500m, and free trading rate of 61%. Both companies will be registered in the main market. 

The third company will be registered in the small and medium enterprises market. It was the Industrial and Engineering Projects Company, with a fair value of approximately EGP 117m, and a free trading value of 62%.

Omran explained that the registration of the three companies in the EGX would give them an opportunity to expand and increase their businesses, as well as enhance the chances of attracting foreign investments and diversifying investment options for all categories of investors.

On the other hand, Omran said that 11 issuances of securitization bonds are on the way to obtain the approval of the FRA this week, with a total value close to EGP 11.5bn, with portfolios varying between real estate financing, financial leasing, and consumer financing.

He added that 2021 witnessed, for the first time, studying 26 bond issuance files with a total value of EGP 21.5bn. 15 of them have already obtained the approval of the authority, with a value of more than EGP 10bn in various financing activities, including the first issuance of green bonds for companies worth $100m, equivalent to EGP 1.5bn.

Omran stressed that the approvals issued for corporate and securitization bonds are consistent with the authority’s comprehensive strategy for non-banking financial activities (2018-2022), which seeks to provide various sources of financing to the entities licensed to engage in real estate financing, consumer financing and financial leasing activities, as well as factoring and microfinance. The aim is to achieve integration between non-banking financial activities subject to FRA.

Omran highlighted the remarkable development witnessed by the annual indicators of bonds, which began in 2019, following the amendments made to the Capital Market Law No. 95 of 1992 and its executive regulations. It led to the recovery of the bond market to provide an alternative for companies to get the necessary financing. 19 issuances were made in 2019 with a value of more than EGP 22bn, compared to only EGP 5.3bn in 2018. In 2020, 17 bond issues were approved, with a value of EGP 24.8bn. It is expected that during 2022, the number of securitization bond issues will increase. 

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