Building the Readiness of State-Owned Enterprises for Listing on the Egyptian Exchange

Building the readiness of state-owned enterprises for listing on the Egyptian Exchange serves as a specialized programmer aimed at supporting and qualifying government companies targeted for listing, as well as enhancing their institutional, financial, and organizational readiness in accordance with capital market requirements and regulations. The programmer also provides an integrated framework for capacity building and elevating the efficiency of the relevant personnel by equipping participants with the necessary knowledge and practices to understand the stages and procedures of listing, the requirements for listing, disclosure, and governance, as well as related financial and legal aspects. This contributes to supporting companies’ preparedness for the offering process and enhancing their ability to efficiently handle the requirements of transitioning into companies listed on the Egyptian Exchange.

Objectives of the Program “Building the Readiness of State-Owned Enterprises for Listing on the Egyptian Exchange”:

• Qualifying state-owned enterprises to fulfill the requirements for offering and listing on the Egyptian Exchange in accordance with approved regulatory frameworks.

• Enhancing institutional and financial readiness to support the efficient execution of the offering and boost investor confidence.

• Consolidating the principles of governance, transparency, and disclosure in line with best practices and capital market requirements.

• Enabling companies to apply the legal and regulatory requirements associated with initial public offering (IPO) processes.

• Developing executive competencies in the fields of financial valuation, investor relations, and offering management.

• Providing an integrated practical experience through realistic simulations of listing and offering procedures and evaluating company readiness.

Target Audience of the Program

• Chief Executive Officers (CEOs)

• Chief Financial Officers (CFOs)

• Investor Relations Officers

• Disclosure Officers

• Boards of Directors

• Governance Officers

• Internal Audit

The program relies on an Execution-Oriented Training methodology aimed at enabling government companies to fulfill the final listing and offering requirements on the Egyptian Exchange, by combining legislative foundations with practical application, ensuring that knowledge is transformed into actionable procedures within the companies.

Pillars of the Building the Readiness of State-Owned Enterprises for Listing on the Egyptian Exchange

Lecture 1: Philosophy of the Legislative Regulation of the Capital Market

• Objectives of capital market regulation.

• The role of the capital market in financing investment.

• The role of the capital market in the government IPOs program.

• Regulatory authorities governing the capital market in Egypt.

Lecture 2: The Legal Framework Governing the Capital Market

• Legislative development of the Capital Market Law.

• Scope of application of Law No. 95 of 1992.

• Executive Regulations of the Law.

• Regulatory decisions issued by the Financial Regulatory Authority (FRA).

• Listing and Delisting Rules of the Egyptian Exchange (EGX).

Lecture 3: Institutional Competencies of Regulatory Bodies

• Competencies of the Financial Regulatory Authority (FRA).

• Competencies of the Egyptian Exchange (EGX).

• Competencies of Miser for Central Clearing, Depository and Registry (MCDR).

• The relationship between the three entities during the offering, listing, and trading processes.

Day Two: Managing the Company’s Journey from Provisional Listing to Trading Commencement

First Lecture: The Philosophy and Objectives of Provisional Listing

• Concept of provisional listing and its objectives.

• The difference between provisional listing and final listing.

• The role of provisional listing in the government IPO program.

Second Lecture: The Regulatory Framework for Provisional Listing

• Cases where provisional listing is permissible.

• Conditions and requirements for provisional listing.

• Required documents and documentation.

• Entities involved in the listing procedures.

Third Lecture: Obligations During the Provisional Listing Period

• The six-month deadline.

• Cases of deadline extension and its governing controls.

• Mandatory obligations during the provisional listing period.

• Exempted obligations during this period.

• Requirements to be met prior to moving to final listing.

Day Three: Financial and Accounting Readiness

Lecture One: Financial System Readiness

• Capital restructuring and organizing subsidiaries in preparation for the IPO/offering.

• Improving financial performance indicators, profitability, and cash flows.

• Preparation of financial statements.

• Application of Egyptian Accounting Standards.

• Accounting policies.

• Error corrections.

• Consolidated financial statements.

• Accounting disclosures.

• Subsequent events.

• Preparing financial forecasts to enhance investor confidence.

Lecture Two: Accounting System Readiness

• Accounting system supporting the IPO/offering.

• Document cycle.

• Internal control.

• Internal audit.

• Risk management.

• Financial information systems.

• Data quality.

Day 4: Governance and Continued Listing Requirements

Lecture 1: Governance Requirements

• Cumulative Voting.

• Proportional Representation.

• Independence of Board Members.

• Women’s Representation Percentage.

• Separation of the Chairman and Chief Executive Officer (CEO) Roles.

• Board Committees.

• Nomination Committee.

• Audit Committee.

Lecture 2: Environmental and Sustainability Disclosure Requirements

• Concept of Sustainability and its Environmental, Social, and Governance (ESG) Dimensions.

• Requirements of the FRA Board of Directors’ Decision No. 108 of 2021.

• Components of the Sustainability Report.

• Environmental, Social, and Governance (ESG) Key Performance Indicators.

• Responsibility of the Board of Directors.

• The Relationship between Sustainability and Continued Listing.

Lecture 3: Financial Valuation of Enterprises

• Egyptian Valuation Standards.

• Fair Value.

• The Role of the Independent Financial Advisor.

• Review of the Valuation Report.

Day 5: Disclosure and the Prospectus

Lecture 1: Disclosure and the Prospectus

• Pre-IPO Disclosure.

• Disclosure During the IPO.

• Post-IPO Disclosure.

• Prospectus.

• Disclosure Report.

• Material Disclosures.

• Responsibilities of the Board of Directors.

• Responsibilities of the Auditor.

Lecture 2: Investor Relations Officer

• Requirements for Appointing an Investor Relations Officer.

• Conditions for Registration in the Electronic Registry.

• Responsibilities and Duties.

• Relationship with the Stock Exchange.

• Responsibility for Disclosure.

Day Six: Execution of the Offering

• First Lecture: Mechanisms of Initial Public Offering (IPO) Execution

  • IPO Manager / Lead Manager

  • Underwriter

  • Independent Financial Advisor (IFA)

  • Legal Advisor

  • Book Building Mechanism

  • Public Offering

  • Private Placement

  • Pricing

  • Allocation

• Second Lecture: Post-Listing Obligations

  • Insider Trading / Insider Transactions

  • Principal Shareholders

  • Related Groups / Related Parties

  • Disclosure of Ownership Structures

  • Disclosure of Board of Directors Decisions

  • Disclosure of General Assemblies

  • Disclosure of Material Events

  • Disclosure of the Use of Capital Increase Proceeds

Day Seven: Applied Workshops – Integrated IPO Simulation

• First Workshop: Reviewing an Actual Listing File

  • Preparation of the Listing File

  • Listing Application

  • List of Documents

  • File Review

  • Common Errors

• Second Workshop: Reviewing Financial Statements Prior to the Offering

  • Requirements for Appointing an Investor Relations (IR) Manager

  • Conditions for Registration in the Electronic Registry

  • Responsibilities and Competencies

  • Relationship with the Stock Exchange

  • Disclosure Responsibility

• Third Workshop: Real Offering Prospectus

  • Preparation of the Offering Prospectus

  • Preparation of the Prospectus

  • Data Review

  • Risk Factors

  • Responsibilities of the Signatories

  • Review of Actual Disclosures

• Fourth Workshop: Assessing Company Readiness for the Initial Public Offering 

  • Accounting

  • Disclosure

  • Governance

  • Accounting System

  • Information Systems

  • Internal Control

  • Compliance

  • Board of Directors

  • Committees

  • Investor Relations

• Closing Session: A one-hour closing session featuring experts from the Authority, the Stock Exchange, and IPO advisors to discuss the challenges of participating companies.