Regulatory Alerts2018-01-01
Circular Letter No. (5) for the Year 2018
The Egyptian Financial Regulatory Authority (FRA) issued Circular Letter No. (5) of 2018 to clarify the compliance deadlines and applicable regulatory frameworks for listed companies regarding mandatory free-float share percentages following Decision No. (13) of 2018. The circular distinguishes between Article Four of the Decision, which grants companies listed prior to its implementation until December 31, 2019, to increase their free-float ratios to meet newly amended listing standards, and Article 53 bis of the Listing Rules, which dictates the remediation procedures for any listed company that subsequently fails to maintain these thresholds. It further mandates that all pre-existing listed companies align their free-float percentages with the updated rules by the specified deadline, while newly listed companies must immediately comply with the revised offering and free-float requirements.