Egyptian Exchange waives listing fees for first 20 SMEs through 30 Sept.

The Egyptian Exchange (EGX) will waive administrative listing fees for the first 20 small and medium-sized enterprises (SMEs) that complete their listing requirements by 30 September, as Cairo seeks to broaden SMEs’ access to capital-market financing.

The EGX incentive will apply to companies seeking their first listing on its SME market, provided they are nominated by the Micro, Small and Medium Enterprise Development Agency (MSMEDA) and submit all required documents before the deadline, the exchange said on Sunday.

The waiver covers fees for reviewing listing applications, adding shares to exchange tables, and publishing financial statements, according to the statement.

The initiative is part of a cooperation agreement between the EGX and MSMEDA aimed at encouraging more SMEs to tap the stock market for financing and expansion.

EGX Chairman Omar Radwan said the incentive would reduce financial costs for promising companies and encourage them to become listed, giving them greater access to investment and financing.

Companies seeking the exemption must submit three-year business plans approved by their listing sponsor or a financial adviser registered with Egypt’s Financial Regulatory Authority (FRA). The plans must outline expansion targets, planned capital increases, and expected profits.

MSMEDA will also provide financing to eligible companies whose financial statements have been audited by accountants registered with either the FRA or the Central Bank of Egypt (CBE), subject to the agency’s financing rules.

MSMEDA Executive Chairman Mostafa Ismail said the arrangement would help companies access capital-market financing while preserving their ability to obtain funding from the agency.

“Several companies have already expressed interest in listing on the stock exchange,” Ismail said, adding that the agency was providing support to help them complete the requirements.

The EGX and MSMEDA have held a series of workshops to raise awareness among SMEs about the benefits and requirements of listing, the statement said.

The exchange will also monitor the business plans of companies benefiting from the initiative through its disclosure department to assess whether they are meeting their targets.

The exchange may extend the fee waiver for additional periods depending on an assessment of the programme’s results and effectiveness, it said.

The initiative comes as Egypt seeks to strengthen its SME sector, which the government considers a key driver of economic growth and job creation, while expanding companies’ access to sustainable sources of financing.