Egypt introduces new regulations to SPACs bourse listing

Egypt’s Financial Regulatory Authority (FRA) has introduced updated regulations for listing the Special Purpose Acquisition Companies (SPACs) under Decision No. 148 of 2024, FRA Chairman Mohamed Farid, announced during EFG Hermes’ 10th Annual London Investor Conference.

SPACs must now have a minimum paid-up capital of EGP 10 million and increase it to EGP 100 million within three months of listing on the Egyptian Stock Exchange.

Capital increases must be offered through private placements to qualified investors. The listing application must include detailed information about the company’s operations, acquisition strategy, and risk factors.

SPACs must ensure a minimum of 50 shareholders and that at least 5 per cent of shares are freely traded. Trading will initially be restricted to qualified investors.

The acquisition proposal must be presented to an extraordinary general assembly within six months of listing, with dissenting shareholders having 30 days to exit.

Acquisitions must be completed within two years of listing, with the SPAC acquiring at least a controlling stake in the target company or companies.