Regulatory Alerts2020-01-01
Decision No. (176) of 2020 of the Authority's Board of Directors
The Financial Regulatory Authority of Egypt issued Decision No. 176 of 2020 to amend the listing and delisting rules for securities on the Egyptian Exchange. The amendment raises the minimum share capital requirement for foreign companies seeking listing to 100 million US dollars, while reducing it to 10 million US dollars for small and medium-sized enterprises, and adjusts capital thresholds for companies with significant Egyptian ownership. Additionally, the decision updates the conditions for maintaining listed status following corporate acquisitions by aligning them with specific capital and structural requirements based on the acquired entity's classification.
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Decision No. (176) of 2020 dated 18/11/2020
Amending Decision No. (11) of 2014 of the Authority's Board of Directors
Regarding the Rules for Listing and Delisting Securities on the Egyptian Exchange
Board of Directors of the Financial Regulatory Authority
Having reviewed the Capital Market Law issued by Law No. (90) of 1992 and its Executive Regulations;
and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments;
and Decision No. (11) of 2014 of the Authority's Board of Directors regarding the rules for listing and delisting securities on the Egyptian Exchange;
and after approval by the Authority's Board of Directors in its meeting held on 18/11/2020;
Has Decided
(Article One)
Sub-paragraph (c) of Article (16 – First: Foreign Shares) of Decision No. (11) of 2014 of the Authority's Board of Directors regarding
the Rules for Listing and Delisting Securities on the Egyptian Exchange, is replaced with the following text:
(Article 16 – First: Foreign Shares - Sub-paragraph "c"):
(c) The foreign company's share capital required for listing its shares shall not be less than the equivalent of 100 million US dollars, and 10 million US dollars in the case of small and medium-sized enterprises. If the company is not listed on a foreign exchange and 50% or more of its equity, assets, and revenues derive from Egyptian companies affiliated with it as stipulated in sub-paragraph (a) of the First section of this Article, the minimum issued and paid-up share capital for the company shall be the minimum required for listing Egyptian company shares.
(Article Two)
The condition for the continued listing of a company's shares on the exchange, as stipulated in the second paragraph of Article (44) of the aforementioned Decision No. (11) of 2014, is amended to require that the acquired companies meet the conditions stipulated in clauses (8, 5) of Article (7)
if it is an Egyptian company, or clauses (7, 5) of Article (9) if it is a small or medium-sized enterprise, or clauses (a, c) of the First section of Article (16) regarding foreign company shares, as applicable.
(Article Three)
This Decision shall be published in the Egyptian Gazette and on the websites of both the Authority and the Egyptian Exchange, and shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors of the Authority
Dr. Mohamed Omran
Financial Regulatory Authority
Arab Republic of Egypt
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