Arab Finance: The Financial Regulatory Authority (FRA) has introduced key amendments to the rules governing the listing and delisting of securities on the Egyptian Exchange (EGX), aimed at enhancing investor protection and financial stability, as per a statement.

Resolution No. 181 of 2024 introduces new requirements for companies wishing to voluntarily delist their securities.

Under the updated rules, companies seeking voluntary delisting must now prepare and publish a disclosure report outlining the reasons for delisting before proceeding with the process.

They are also required to implement the delisting at the highest price determined from either the fair value of the share, the highest closing price in the last month, or the average closing prices of the last three months prior to the call for the general assembly meeting.

The decision mandates companies to buy back shares from shareholders wishing to sell, based on the highest of three values: the fair value determined by an independent financial advisor approved by the FRA, the highest closing price in the month preceding the delisting decision, and the average closing prices of the company’s shares over the last three months.

Additionally, companies can open a temporary account to buy back shares from those affected by the delisting, subject to the same rules applied to treasury shares.

The FRA's amendments also streamline the process for Special Purpose Acquisition Companies (SPACs), providing specific controls for acquisitions and setting a two-year maximum timeline for completing acquisitions after their provisional listing on the stock exchange.

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