Stock Exchange Chairman: Government offerings are a bet for the growth of the capital market

05:05 PM

Sunday 28 November 2021

Shaima Hefzy wrote:

Dr. Mohamed Farid, Chairman of the Board of Directors of the Egyptian Stock Exchange, said that increasing the supply of securities through the successive offering of large government companies is a necessity for the growth of the capital market.

He added, in statements on the sidelines of the Stock Exchange Conference for Development, that measuring the attractiveness of the market to investors is related to the size of the offerings, which is what we see in the Saudi market.

Prime Minister Mostafa Madbouly had said that the government aims to offer five or six companies on the stock exchange during the current fiscal year.

The head of the stock exchange indicated that Banque du Caire’s offering was postponed during the past year due to the repercussions of the Corona crisis, adding that the bank, along with the Central Bank and the Ministry of Finance, are the ones who determine the date of the offering.

He added that the repercussions of the crisis on the capital market and the corresponding stock prices would have affected the pricing of Banque du Caire’s shares in the offering, which delayed the subscription process.

The Chairman of the Stock Exchange explained that canceling the capital gains tax was an unlikely matter for the Ministry of Finance, so the concerned parties continued to try to reach determinants that suit everyone.

He stressed that the Ministry of Finance responded to all market requirements, with regard to capital gains tax.

The Egyptian government intends to apply the tax at a rate of 10% on the net profits of the stock portfolio at the end of each tax year, after deducting the brokerage fees.

The Stock Exchange launched an awareness campaign targeting small and medium-sized companies to introduce the importance and role of the offering in the Stock Exchange as a source of financing in Port Said.

Farid indicated that the stock exchange will continue with this program to have an introductory meeting in the governorates every month and a half, and it will be the next party in Upper Egypt.

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