Egypt Daily News – The Egyptian Stock Exchange (EGX) has initiated the temporary listing process for the shares of the United Bank starting today, Thursday.
This follows the approval granted by the Securities Listing Committee during a meeting on Wednesday. The shares are set to be listed with a paid-up capital totaling 5.5 billion pounds, equating to 1.1 billion shares, each with a nominal value of 5 pounds—distributed across seven issuances as per the rules outlined in Article 7 and other relevant articles of the EGX listing regulations.
To formalize the listing, the United Bank is required to adhere to specific provisions outlined in Article 7, including the completion of registration with the relevant regulatory authority.
The bank must also submit a request to the stock exchange for the shares to be publicly offered within six months of the temporary listing.
During the interim phase from the date of temporary registration until trading commences, the bank’s shares cannot be traded without the approval of the regulatory authority.
Notably, if the bank fails to proceed with offering its shares and fulfill the necessary conditions within the six-month timeframe, the temporary registration will become void. However, this period could potentially be extended, subject to the authority’s discretion based on the bank’s justifications.
Moreover, throughout the temporary listing period, the United Bank must observe obligations specified in Article 48 of the regulations.
The rules enforce a stipulation requiring that each major shareholder, along with any replacements, retains at least 51% of their holdings in the bank’s equity upon listing. If these retained shares fall below 25% of the total equity, any shortfall must be compensated by contributions from the bank’s board members, founders, or other shareholders for a minimum duration of 24 months.
Additionally, the bank must issue periodic financial statements for two fiscal years post-offering, ensuring that the same retention percentages apply to any increases in capital during this period, aside from free shares as per clause No. 7 of Article No. 7 of the listing rules.
