Shareholders' approval required before applying Egyptian Exchange decision on foreign-currency-listed companies

The Egyptian Exchange's decision to allow companies listed in foreign currencies to trade their shares in the Egyptian pound was not obligatory and requires the approval of those companies' general assemblies, EGX Chairman Mohamed Omran said.

Speaking to MENA, Omran said the enforcement of the EGX decision starts from today but legal measures have to be taken beforehand.

Companies willing to benefit from the decision have to acquire the approval of their shareholders through extraordinary general assembly meetings and present their official minutes to EGX, he said.

The EGX decision was taken after some foreign-currency-listed companies complained about the lack of US dollar liquidity.

The shares of five registered companies are traded in US dollars on the EGX: the Faisal Islamic Bank of Egypt, Al Arafa for Investment and Consultancies, Naeem Holding (NAHO), Egypt Kuwait Holding, and Maridive and Oil Services SAE (Maridive Group).