FRA updates EGX listing and de-listing guidelines

Egypt’s Financial Regulatory Authority (FRA) has updated the guidelines for listing and de-listing on the stock exchange (EGX), according to a bourse filling released on Monday.

The new amendments will replace provisions 6 and 8 from Article 1 with Article 7.

Article 7 stipulates that the issued capital must be fully paid in and not less than 100 million Egyptian pounds ($3.2 million), or its equivalent in foreign currencies, as per the most recent annual/periodical audited financial statements released and endorsed by the company’s general assembly.

• The company’s net profit before taxes for the last financial year shall not be less than “5 per cent” of the paid-up capital needed to be registered. This would be on condition that the company’s pre-tax net profit are generated from the operation of its business in a way that advances the goals outlined in its bylaws..
• The percentage of net profit before tax, as determined annually in the periodic financial statements, include the capital that must be recorded and, if their preparation is finished, the periodic financial statements that come after.
• Shareholders’ rights in the last annual or periodical financial statement issued prior to the listing request should not be less than the paid-in capital.

The new regulations will come into effect the following day from the announcement of the statement.