Through this activity both parties aim to raise companies’ awareness about the listing and its advantages and to help them adhere to the best governance practices.
Mr. Mohamed Farid Saleh, EGX chairman, stated that EGX management has taken the responsibility to develop the securities industry from the value chain perspective; This is done through the supply side support, the demand side stimulation and improving the trading mechanisms.
“In order to enhance and activate the disclosure process as a mechanism to attract foreign investments, EGX’ management has succeeded in increasing the number of listed companies disclosing in English to 40 companies so far, compared to 25 companies before ” according to Mr. Farid.
Mr. Farid added that EGX is doing all efforts with all related parties in the market to activate the Shorts Selling mechanism during the first quarter of next year 2019, expecting that the decision regulating the market maker will be issued within few days by EGX management.
EGX chairman stated during his participation in the workshop on Thursday that the international institutions and investment funds are making their investment decision according to the macroeconomic indicators stability. Egypt has succeeded in implementing an ambitious reform program from the liberalization of the Egyptian Pound exchange rate and restructuring of fuel subsidies, beside the big regulatory reforms including investment, bankruptcy and the capital market laws.
He pointed that listing in the stock exchange enables companies to start, grow, achieve targets and help them be more attractive to international investor interest. In his speech, Mr. Farid said that raising the level of knowledge and financial awareness of the society and disseminating the financial culture is necessary for the capital market improvement and developing a conscious and financially educated generation reflected on trading and liquidity rates; moreover to use the stock market as a financing platform.
He stated that EGX is working in coordination with companies to raise their commitment to the governance and sustainability standards, especially in light of the growing investment institutions interest in companies that are more committed to those standards. During the workshop, EGX leaders gave a presentation on the listing and public offering steps, including rules, procedures, benefits and documents needed for this purpose, as well as the disclosure requirements and adherence to governance standards in accordance with the best international practices in the post- listing phase.