Egyptian Bourse deputy head Mohamed Sabri stated that listing on the bourse provides companies with broader financing opportunities. This is because their financial data, performance, and expansion plans are disclosed to investors and are subject to regular updates. This allows investors to assess a company's growth potential. Sabri made these remarks at the "Money Made Simple" conference in Alexandria.
According to Sabri, listed companies can choose from various financing tools based on their needs and growth stage. These tools include capital increases, bond issuance, sukuk, and other financing instruments. Some companies may prefer borrowing through bond or sukuk issuance rather than introducing new shareholders. This is especially true if they foresee growth opportunities and want to maintain their current ownership structure.
Sabri noted that sukuk have become a significant source of financing for corporate expansions. This is alongside corporate bonds and securitized bonds. He emphasized that listed companies have an added advantage when seeking financing. This is because the market and investors have a clearer understanding of their performance and financial data.
The disclosure requirements help financiers and investors evaluate a company's management quality, expansion potential, and ability to enter new markets. This facilitates informed financing decisions. Sabri highlighted the importance of these disclosures in assessing a company's creditworthiness and growth prospects.
The Egyptian Bourse has rules allowing small and medium-sized enterprises to list on a dedicated market. The listing requirements vary based on the company's size. Some companies can start on the small and medium enterprise market and then move to the main market after meeting the necessary conditions.
Sabri pointed out that the Egyptian Bourse reflects various sectors of the economy, including agriculture, industry, and services. An increase in trading volumes and market capitalization indicates a growing and diversified market. The bourse's performance is a reflection of the overall health of the Egyptian economy.
The Egyptian Bourse provides a platform for companies to raise capital and for investors to participate in the country's economic growth. With a range of financing options available, companies can choose the most suitable method for their needs. The bourse's commitment to transparency and disclosure ensures that investors have access to accurate and timely information.
Key points
- Sukuk have become a key financing source for Egyptian companies.
- Listed companies have access to various financing tools, including sukuk and bonds.
- Disclosure requirements help investors and financiers assess a company's growth potential and creditworthiness.
