FRA approves 1st SPAC firm w/ EGP10m capital

Egypt’s Financial Regulatory Authority (FRA) has approved the establishment of the country’s first Special Purpose Acquisition Company (SPAC), Catalyst Partners Middle East (CPME), with a capital of 10 million Egyptian pound. This move is part of recent regulatory updates aimed at boosting Egypt’s non-banking financial market.

The company plans to list its shares on the EGX within one month and increase its capital to 100 million Egyptian pound within three months through a private subscription limited to qualified investors and financial institutions. The company must also complete its acquisitions within two years from its listing date.

Under the new regulations, qualified investors are individuals with at least ten years of experience in financial management or direct investment and holding liquid assets or financial instruments worth at least 5 million Egyptian pounds. Foreign companies with equity of no less than 50 million Egyptian pounds are also included.

These regulatory changes aim to open new financing channels for non-banking financial activities and digital financial technology platforms, supporting the growth of both non-banking financial institutions and fintech startups in Egypt.

Attribution: Amwal AlGhad English

Subediting: M. S. Salama