The Egyptian Exchange (EGX) held talks with 79 companies in 10 economic sectors since October 2018, as part of its intensive efforts during the last period to promote listing of new companies on the EGX.
This comes only after eight months of the development and launch of the new customer relationship management (CRM) system to follow the target companies to be listed on the stock exchange.
This is carried out through collecting data of companies that perform transfers on non-listed securities (orders market, over the counter), and companies registered at the central storage system of Misr for Central Clearing, Depository, and Registry Company (MCDR), in addition to companies registered at the General Authority for Investment (GAFI).
Mohamed Farid, the chairperson of EGX, told Daily News Egypt that the new CRM system will continue its efforts over the upcoming period to enhance the listing and offering operations, stressing that its work will not be limited to the addressed companies. He revealed that a large database of the majority of the joint stock companies in Egypt was formed.
EGX also plans to address all the industry and trade federations, commerce chambers, and businessmen associations to promote awareness of the role of EGX in funding companies and their expansions through explaining the declined cost of funding through capital, which is the least compared to the cost of funding through direct investment companies or direct investment funds and venture capital funds.
He added that even though there are strong disclosure requirements, EGX is considered the best in terms of the cost of funding. Additionally, the reregistration process will enable companies to deal easily and transparently with the banking sector to secure extra funding.
Farid said that the plan of EGX over the upcoming period will focus on simplifying all rules of registrations, trading, codification, and automated programmes related to codifying investors, such as investor identification programmes.
According to a recent report issued by the EGX on the performance of the new system, the target companies are registered and distributed in the sectors of real estate, pharmaceuticals, energy and gas, oil and food processing, technology and media, services and industrial products and cars.
The report divided the companies into three sections; companies showing a positive interest in listing on the stock exchange, companies showing hesitant interest and need more knowledge and understanding, and companies showing interest but believe that the current time is not appropriate for enrolment.
The number of companies that showed positive interest in the stock market reached about 17 companies, some of which began to take serious steps to study the process of registration and placement in coordination with investment banks.
While the number of companies showing hesitant interest and studying the feasibility and timing of entry at the stock exchange hit about 17 companies. Meanwhile, companies that believe the current time is not appropriate but still have a future desire to register, recorded 20 companies, according to the report.
During the discussions conducted by the stock exchange, about 25 companies indicated their unwillingness to register in the stock exchange.
The average capital of the target companies to be listed in the EGX is nearly EGP 700m.
Developed and launched by the stock exchange, the new system aims to select companies, offer advantages, facilitate procedures of listing on the stock exchange and provide technical consultations.
As part of its efforts to attract new companies to register on the EGX, in accordance with the new CRM system, is to build a large database of the majority of companies that have a desire to enter the EGX through direct communication with these companies in order to familiarise them with the advantages and procedures and regulations of listing on the EGX.