Regulatory Alerts2021-01-01
Financial Regulatory Authority Board Decision No. 142 of 2021
The Financial Regulatory Authority (FRA) of Egypt issued Board Decision No. 142 of 2021 to amend paragraphs 1 and 3 of Article 7 in its 2014 rules governing the listing and delisting of securities on the Egyptian Exchange. The revised provisions establish precise minimum thresholds for offered share percentages, free-float ratios, and market capitalization calculations required to qualify a company's shares for listing. The decision further mandates official publication in the Egyptian Gazette and on the electronic websites of both the Authority and the Exchange, taking effect from the day following publication.
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Board Decision of the Authority No. (142) for the year 2021 dated 2021/9/12 Amending Board Decision of the Authority No. (11) for the year 2014 Regarding the Rules for Listing and Delisting of Securities on the Egyptian Exchange
Board of Directors of the Financial Regulatory Authority
Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its executive regulations; and the Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and the Board Decision of the Authority No. (11) of 2014 regarding the rules for listing and delisting of securities on the Egyptian Exchange; and after the approval of the Board of Directors in its meeting held on 2021/9/12;
Decided
(Article One)
The following two texts shall replace paragraphs (1, 3) of Article (7) of the rules for listing and delisting of securities on the Egyptian Exchange issued by Board Decision No. (11) of 2014:
Article (7) Paragraph - 1: The following conditions are required for listing shares of Egyptian companies: 1- The percentage of shares to be offered shall not be less than (25%) of the total listed shares of the company, or one-quarter per thousand of the free-float market capitalization on the Exchange, representing not less than (10%) of the company's shares, or shares equivalent in value to (1%) of the free-float market capitalization on the Exchange. The term "offering" in applying this condition refers to offering the company's shares for sale on the Exchange based on an offering circular or a disclosure report for the purpose of listing, approved by the Authority, which includes the findings of the independent financial advisor's study on determining the fair value of the share and the auditor's report regarding this study in accordance with the relevant Egyptian Auditing Standard, provided that either is published according to the rules established by the Board of Directors.
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Article (7) Paragraph - 3: 3- The percentage of free-float shares shall not be less than (10%) of the total company shares, or one-eighth per thousand of the free-float market capitalization on the Exchange, representing not less than (5%) of the company's shares, or shares equivalent in value to half a percent of the free-float market capitalization on the Exchange.
(Article Two)
This Decision shall be published in the Egyptian Gazette and on the electronic 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 Dr. Mohamed Omran
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