Egypt's SME exchange to start trading in Q2

Trading on Egypt's small- and medium-size enterprises (SME) stock exchange Nilex will start between March and June, a newspaper reported yesterday.

"We will start with three or four companies that comply with trading rules, most important of which is floating no less than 10 per cent of their capital," the daily Al Mal quoted Nilex Deputy Chairman Mohamed Omran as saying.

Nilex was set up in 2007 to allow SME's to raise funds outside bank loans. Nine companies are listed on Nilex but trading has not started because the firms have not yet launched IPOs or private placements.

Any firm that does not meet trading requirements within a year of listing will be delisted, Al Mal quoted Omran as saying.

Omran said he expected the Egyptian Financial Supervisory Authority, the market regulator, to raise the minimum capital for firms on Nilex to E£100 million (Dh66.9m) instead of 25 million, the paper said.

Nilex officials could not immediately be reached for comment.

 

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