The Egyptian Exchange (EGX –www.egx.com.eg) has approved the listing of the 23rd company on Nilex (the Nile Exchange – www.nilex.com.eg), the EGX market for growing medium and small companies. A meeting of the listing committee on 17 January approved to list the shares of Al Fanar Contracting Construction Trade Import And Export Co, which has 8 million shares, at a par value of EGP1.00 (USD0.15) each, according to the Nilex news feed. The shares were due to be added to the database with effect from 20 January but were not to be traded until the company and its Nominated Advisor comply with listings requirements.
Listing standards set by the Egyptian Financial Supervisory Authority (www.efsa.gov.eg) require a disclosure report and an approved study on the fair value of the company’s shares. The company has 6 months to meet other conditions set by EFSA (Board of Directors decree no 81 of 17 Oct 2011) or its listing “should be considered as if it never took place”.
For instance, also on 17 Jan the Listing Committee decided that the listing of the shares of National Investment and Reconstruction (Nirco) shall be terminated and it should be considered never to have been listed and it was removed from the EGX database effective 20 Jan 2013.
The previous Nilex listing was International Company for Medical Industries (ICMI), approved on 30 Dec and listed on the database from 31 Dec, with a share capital of EGP4m ($604,000) at par value. Trading would wait for the requirements to be complied with. The Egyptian Modern Education Systems (MOED) was approved on 12 Dec and added to the database on 16 Dec.
Companies wishing to list on the Nilex must work with a Nominated Advisor and new rules and requirements have been issued. There are 35 approved nominated advisors listed here. According to the Nominated Advisor requirements, the Nominated Advisor acts as coordinator between issuer and the exchange, advises and helps the company on all responsibilities during the application process and after listing, helps the company fulfill ongoing disclosure obligations, informs the regulators of non-compliance, helps the company with its initial public offering, and must provide research coverage. These obligations last for 2 years from date of listing.
Nilex started trading on 3 Jun 2010 and the trading sessions were set from 11am-noon with an automatic close period from 11:50-noon. The initial listings were: El Badr Plastic; Masria Card; TN Holdings for Investment; Kato Agriculture Development Co.; Utopia Real Estate Investment and Tourism; Ameco Medical Industries; International Company for Fertilizers and Chemicals; Al Oroba Trading Mining and Supplying; Al Moasher for Programming and Information Dissemination and El-Barbary Investment Group (B.I.G) with trading suspended in the last 2 until they submitted the disclosure reports. All started trading at par value.
According to the latest market report (posted 21 Jan here but updating daily on this link), the most active company yesterday was Marseille Almasreia Alkhalegeya For Holding Investment with 34 trades totaling EGP141,061 ($21,300) in value, followed by Utopia with 24 trades totaling EGP111,398.