Listed companies are advised to buy treasury stocks to stimulate demand

Listed companies are advised by the Financial Regulatory Authority to

buy treasury stocks in order to stimulate demand for shares as a way of withstanding the Coronavirus pandemic fall-outs, according to chairman of the Egyptian Stock Exchange Dr. Mohmed Farid.

While mulling the creation of a new department specializing in reaching out to potential newcomers, EGX seeks to enlist new companies and help increase the number of investors, he told Osoul Misr Magazine.

“ This department will be charged with monitoring targeted companies through collecting data about firms swapping stock titles among investors, companies enrolling in Misr For Central Clearing Depository and Registry as well as registries of the General Authority for Investments. Afterwards, such firms will be approached and persuaded to go public.”

Up to 235 firms have been approached by EGX during 2019, he estimated.

EGX plans to execute initial public offerings for 3 to 4 private firms running myriad businesses throughout 2020 and to open communication channels with Ministry of Public Business Sector and other governmental organizations with the aim of following up offerings of the state-owned shares.

It’s noteworthy that the Central Bank of Egypt eyes the public offering of Banque Du Caire shares in the first half of this year.

Additionally, the government announced a scheme for offering shares of 23 state-owned companies and one bank for trading on the stock exchange.

With the Eastern Tobacco Company going public last year, it is expected that stakes in Alexandria Container & Cargo Handling Company and Abu Qir Fertilizers are poised to go through IPOsin 2020.