Egypt bourse to reduce free float required to list on EGX 30

Cairo (Capital Markets in Africa):- – Egypt’s stock exchange said on Thursday it would reduce the free float required for new companies to list on its benchmark EGX 30, as part of structural changes to the index.

Companies previously had to have a 15 percent free float to list on the EGX 30. Under the new rules, which take effect on August 1, firms will be able to join with a minimum 5 percent free float as long, as the market value of the float is at least 100 million Egyptian pounds ($13.1 million).

The bourse also said it planned to launch a new equal-weighted index that would include the top 50 companies in terms of liquidity from August 1.

The reforms aim to help reinvigorate trading in the Arab world’s most populous country, which has struggled to win investor confidence during years of political and economic turmoil since a popular uprising in 2011.

($1 = 7.6300 Egyptian pounds)

Source: Reuters Africa Online Business News