Egypt: FRA greenlights EFG Holding's new listing mechanism via U Consumer Finance
Arab Finance: The Financial Regulatory Authority (FRA) has approved the publication of the disclosure report of U Consumer Finance, formerly known as valU and a subsidiary of EFG Holding, for the trading of its shares on the Egyptian Exchange (EGX), the FRA stated on June 10th.
The step marks a new legal mechanism proposed by EFG Holding and approved by the FRA, enabling the listing and trading of company shares without the need for a public or private offering or a capital increase.
Aِccordingly, EFG Holding will benefit from this first-of-its-kind move in the Egyptian market to use a dividend distribution mechanism as a means to expand the ownership base and listing for trading purposes.
The method converts indirect ownership into direct ownership, broadens shareholder participation, and introduces a more flexible approach to market entry for companies operating in the non-banking financial services sector.
The company has fulfilled the necessary listing requirements and prepared a report that includes all legal, financial, and technical details of the process.
U Consumer Finance will become the first consumer finance company to be listed on the EGX, reinforcing the FRA's strategy to integrate non-banking financial institutions into capital markets.
The move aims to expand the base of listed companies in the sector and promote the benefits of listing, including enhanced transparency, governance, funding options, and compliance with sustainability standards.
© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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