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Egypt Today: IPOs of state-owned firms to increase market attractiveness

EGX has a vision to deepen the stock market and increase trading volumes.
05.12.17 | Interesting article at Egypt Today

The initial public offering (IPOs) of state-owned companies will increase attractiveness of the stock market and hike trading volumes, Chairman of the Egyptian Exchange (EGX) Mohamed Farid said Monday.

During his speech in CEO Thoughts Conference, organized by think-tank Al Mal GTM, Farid disclosed that the EGX has a vision to deepen the stock market and increase trading volumes, "the higher trading volumes achieved, the more guarantee we have for success of new IPOs," he said.

"These IPOs will also boost the capabilities of these companies to commit to governance regulations, and also allow the government to monitor their performance," Farid said.

The EGX's plan includes diversifying the investment options to all kind and size of investors through introducing and activating more financial products.

The government is launching an IPO program that will offer shares in several state-owned companies over the next three to five years in fields such as petroleum, services, chemicals and real estate to help boost state finances.