Listing your company on the market is a major decision. In many scenarios, it is one of the crucial steps not only for development of the company but also to keep its institutional structure and trade mark from desertion. It also enhances the horizontal and vertical means of growth of the company.
A professional market such as EGX implements best practices in its listing trading rules and procedures. The number of listed investors on EGX reached around 2 million investors (individuals and institutions). Moreover, EGX offers a wide range of benefits, including access to public capital to fund growth. Unlike other sources of capital like bank loans that are insufficient to support the expansion strategies of successful companies, listing on the Exchange enables a better support to capital and a better media profile.
Being the leading market of the region, EGX ensures Balance between protecting investors and preventing overburdening companies with expensive and unnecessary obligations.
Gateway to Finance
Through EGX, the company can access the investors’ community and increase the number and diversity of its security holders from large institutional investors to private investors (local and international). Listing on EGX grants the opportunity to respond to the companies’ main strategic target, the access to finance, to fund present and future growth. Thus, listing is the keyword to pursue expansion through issuing additional securities either through equity or debt finance.
Being on the EGX board enhances your profile within the community of investors as there is extensive and ongoing media coverage that creates greater awareness of your products and services. This media publicity adds to your company’s value and promotes the position and reputation of the company within its particular industry. This also would be favorable in terms of holding deals with suppliers, customers and potential investors.
Listing and trading the company on EGX creates a market value for its shares. This grants the company's management the opportunity to further motivates its staff through the introduction of an employee share ownership plans.
Mergers and Acquisitions
The daily market trading price of the shares is a way of evaluating the performance of the company based upon its strength in the market. This evaluation is a critical component in the Mergers and Acquisitions. Thus, being one of EGX listed companies paves the way for future M&A - Deals.
Benchmark the company
EGX has 17 sectors classifications, it is very easy for the company to be compared with its peers. Thus, sector indices are very significant for those who want to deeply look at the industry participants and evaluate their performance.
Exit StrategyBeing listed on EGX is the core of keeping and preserving the existence of the company name no matter who the share-holders are. This gives the chance for the main shareholders to plan for selling the whole company at a true value if they wish to, on there long term strategy.