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Abu Dhabi, UAESunday 24 June 2018

Egypt expects up to five IPOs by end of year

Stock market to work on attracting more companies by adding new financial instruments including Islamic financing

Mohsen Adel, the vice chairman of Egyptian Stock Exchange , says he expects up to five IPOs in the country this year. Mohamed Abd El Ghany / Reuters
Mohsen Adel, the vice chairman of Egyptian Stock Exchange , says he expects up to five IPOs in the country this year. Mohamed Abd El Ghany / Reuters

Egypt expects to see three to five initial public offerings before the end of this year, the vice chairman of the country's stock exchange said.

Mohsen Adel said that over the next few years, the stock market would work on attracting more companies by adding new financial instruments including Islamic financing, and switching to a full digital quote system.

"A committee will be set up in the stock market within a few days to work on attracting new companies ... by informing them of the benefits of registering," Mr Adel said.

Around 270 companies are listed on Egypt's stock market and the Nile bourse for small firms. Some 500,000 investors registered to trade though not all are active in the market.

"I expect the listing of three to five new companies in the stock market before the end of this year, between medium and large-sized ones," Mr Adel said.

Egypt's prime minister appointed Mohamed Farid Saleh as the new chairman of the stock exchange on Sunday, replacing Mohamed Omran whose four-year term ends this week.

* Reuters