NILEX, ITIDA Sign MOU To List 25 IT Companies
The Information Technology Industry Development Authority (ITIDA) and the Egyptian Exchange (EGX) have signed a Memorandum of Understanding (MOU) as a mean of cooperation to support the IT industry companies, especially those interested to be listed in SMEs market (NILEX).
The MOU signed by Dr. Mohamed Omran, EGX Chairman and Eng. Yasser Qadi, ITIDA CEO, aims to enhance cooperation between both parties to finance small and medium Egyptian enterprises specialized in telecommunications and information technology industry which are essential components of the economic and social development and also provides the opportunity for investors to diversify their investments in the stock market.
ITIDA supports the SMEs specialized in telecommunications and information technology industry through the help of the NILEX’s Nominated Advisors. Nominated Advisors’ role includes advising and assisting the applicant company on all its responsibilities during the application process and its responsibilities to maintain its status once listed and helping to fulfill its ongoing disclosure obligations.
Eng. Yasser Qadi, ITIDA CEO, asserted that the ITIDA will cover 80% of the total costs of listing the IT companies in NILEX; while the rest amount is borne by those companies.
“ITIDA’s data base consists of 1400 companies of which 85% are SMEs” Qadi added. “ITIDA aims at listing 25 companies within a year so that IT companies will seize 50% out of the total numbers of NILEX-listed companies.” Qadi says the SMEs are the backbone of the Egyptian economy which need
“The SMEs are the backbone of the Egyptian economy which need our finance and support as well as assistance in making them merge together creating bigger entities that promote the IT industry condition and attract foreign and Arab investors.”
Qadi added that this MOU between the ITIDA and the EGX is an initiative that targets motivating and urging those companies to double their capitals and enter new markets so that they as well as the economy will enjoy considerable benefits.
From his side, the EGX chairman Dr. Mohamed Omran has asserted that the EGX will introduce the advantages of listing in the NILEX as a form of financing for the ITIDA’s IT companies.
“NILEX’s Nominated Advisors will also provide highly-efficient consulting services in order to help the SMEs in enhancing their administrative and productive efficiency.” Omran added.
SMEs play a highly vital role in Egypt as they roughly contribute to 75% of the economic growth and to 80% of the employment. Yet, the SMEs often meet financing challenges, when they tend to expand and to open new markets.
Worth mentioning, there are 20 SMEs specialized in various sectors and industries listed in the NILEX in which there are three companies specialized in telecommunications and information technology industry: Pharaoh Tech for Control and Communication Systems (PTCC.CA), Al Moasher for Programming and Information Dissemination (AMPI.CA) and Masria Card (MSRC.CA).
In the meanwhile, there are two companies specialized in telecommunications and information technology industry following the procedures for listing in NILEX.
