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Cairo to host a new stock exchange dedicated to SMEs - 09 July 2007
09-07-2007 - EGYPT
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Country from : Egypt
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According to American Chamber of Commerce in Egypt:
In the past two years, the CASE has introduced margin trading, short-selling and online trading. For its next trick, CASE officials say they will create an independent bourse for small and medium-sized enterprises (SMEs) to run parallel to the current stock exchange.
The new SME stock exchange, expected to launch in the coming months, will allow companies that do not meet the paid-in capital requirement for a listing on the CASE an opportunity to be traded on the capital market. While the plan has been on the drawing board for years, its launch now would seem appropriate given the CASE’s commitment to introducing new mechanisms that diversify investment.
Hani Sarie-Eldin, chairman of the Capital Market Authority (CMA), speaking to Business Monthly last November, said the introduction of the new stock exchange would provide smaller companies with high growth potential and access to capital that could help them realize that potential. “In markets around the world, SME stock exchanges are [buzzing] with activity because many investors, both individual and institutional, actively seek out investment opportunities in smaller companies because of their growth potential,” he said. “Moreover, SMEs are also more in need of registering on a stock market because, after all, one of the main purposes of any stock market is to allow companies to raise capital without having to get a loan from the bank. We often forget this here because our market is dominated by large companies that don’t necessarily need the capital increase. But creating an SME stock exchange would give smaller companies the ability to grow.”
For further information: American Chamber of Commerce in Egypt
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