Mohamed Omran, head of the Egyptian Financial Regulatory Authority (FRA) said that the authority is studying the possibility of making an amendment to the rules of listing and delisting in the Egyptian Stock Exchange, including obligating existing companies to increase the percentage of free trading.
Omran added, during a conference that presented the Egyptian Financial Supervisory Authority’s strategy for the development of the capital market (2022/26), that working to attract new companies for listing on the stock exchange and accelerating the program to expand the ownership base of state-owned companies is the decisive and positively affecting factor in increasing the market depth and market capitalization value.
He stressed that many literature and academic studies show a positive and moral impact of government proposals on the development of the economy, financial markets and the performance of companies after the offering.
He continued, “The results of the studies showed that the process of privatizing government companies in the stock market stimulates the money market and enhances its liquidity.”
