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Nilex Market. NILEX is the Egyptian Exchange' market for growing medium and small companies, which offers an appropriate, secure, yet flexible regulatory framework, for both companies & investors, together with a streamlined admission process. - PowerPoint PPT Presentation

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Page 1: Nilex Market
Page 2: Nilex Market

Nilex Market

NILEX is the Egyptian Exchange' market

for growing medium and small companies,

which offers an appropriate, secure, yet

flexible regulatory framework, for both

companies & investors, together with a

streamlined admission process.

Page 3: Nilex Market

Supports the capital raising activities of more established

companies

236 Companies8 Companies

Supports the capital raising activities of

earlier stage companies

Page 4: Nilex Market

Why Nilex?

Government Support

Relaxed Requirements

Governmen

t

Support

Foreign Investment

Better

Valuation

Not just a cheap financing

Page 5: Nilex Market

Nilex Benefits

Companies Investors

Access to long term capital for the

expansion of their businesses.

Opportunity for investors to diversify

their portfolios by investing in high

growth companies. 

Economy

Supports promising sectors in the economy which suffers from finance obstacles.

Page 6: Nilex Market

Nilex Benefits

Unlimited Long-term Finance

Cheap Finance cost

Relaxed Rules & Regulation

Large Funds to ensure liquidity

Full Government Support

Lower Listing Fees (0.5 per

thousand of the capital)

Local & Foreign investors’ Interest

Page 7: Nilex Market

Nilex Trading Platform

Settlement

Session duration

Foreign Restrictions

Dividends/ capital gain taxes

T+2

12:00 to 1:00

No

No

Trading fees1/10 per thousand (A maximum of L.E 100)

Trading Mechanism Auction

Page 8: Nilex Market

Current Situation

• Nilex Current companies: 8

• In the Pipeline: 10

• Number Of Nominated Advisors: 24

• IMC Financing 90% of NomAds Fees

Current

Situation

Page 9: Nilex Market

Is It Easy For SMEs To Join Nilex?

Page 10: Nilex Market

Less than L.E. 25 Less than L.E. 25 millionmillion

CapitalCapital

Nilex Main Market

Min of L.E. 20 millionMin of L.E. 20 million

10%10% within within 1 year1 year of of listing datelisting date

Floating SharesFloating Shares 10%10% within within 3 months3 months of listing dateof listing date

2525 shareholders shareholders within within 1 year1 year of the of the

listing datelisting dateNo. of ShareholdersNo. of Shareholders

100100 shareholders shareholders within within within within 33 monthsmonths

of listing dateof listing date

Listing Rules

Page 11: Nilex Market

Nilex Main Market

Not less than Not less than 50%50% of of the company's capitalthe company's capital

Shareholders equityShareholders equityNot less than Not less than 100%100% of of the company's capitalthe company's capital

Exceptions is made in Exceptions is made in case of a viable case of a viable business planbusiness plan

Financial StatementsFinancial StatementsAt least one year At least one year

Audited FinancialsAudited Financials

Not less than Not less than 100 100 thousandthousand shares shares

No of SharesNo of SharesNot less than Not less than 2 million2 million

sharesshares

Listing Rules

Page 12: Nilex Market

Company QualifiedSponsor

Contract

Help the company preparing the listing

documents and meet disclosure requirements

Stock Exchange

Listing

on the Exchange

Du

rin

g O

ne

Y

ear

Investors Issue 10% of the

Co. to investors

How to list?

Page 13: Nilex Market

Disclosure Rules

Nilex : Regulatory Framework

Maintaining the majority of the main market disclosure rules to ensure

market efficiency and investor protection.

SMEs to submit quarterly and semi-annual financial statements approved

by the company’s management to EGX and CMA

SMEs to submit audited annual financial statements to EGX & EFSA.

Joint responsibility of the qualified sponsor and the company in case of non

compliance to the disclosure rules.

Page 14: Nilex Market

Qualified Sponsors

Only licensed companies to undertake the following

activities, that are eligible for Qualified Sponsors :

Nilex : Regulatory Framework

a. Financial Consulting Companies.

b. Investment banks and underwriters

c. Private equity firms

d. Venture capital firms

e. Direct Investment Funds

Page 15: Nilex Market

Role of Qualified Sponsors

Advise and assist the applicant company on all its responsibilities during the application process and its responsibilities to maintain its status once listed.

Assist the Company in preparing its financial statements and submitting in due time.

Inform the CMA in case of the company’s non compliance with the rules and regulations.

Help the company in its initial public offering of its shares.

The sponsor’s obligations and responsibilities will be maintained for two years from the date of the company’s listing.

Nilex : Regulatory Framework

Page 16: Nilex Market

Disclosure Rules

Nilex : Regulatory Framework

Maintaining the majority of the main market disclosure rules to ensure

market efficiency and investor protection.

SMEs to submit quarterly and semi-annual financial statements approved

by the company’s management to EGX and CMA

SMEs to submit audited annual financial statements to EGX & CMA.

Joint responsibility of the qualified sponsor and the company in case of non

compliance to the disclosure rules.

Page 17: Nilex Market

Sector: Advertisement

Capital : L.E 20 million

TN Holdings for investment

Sector : Smart Card

Capital : L.E 10.8 million

Masria Card

=Sector : Plastic Industry

Capital : L.E 1.7 million

El Bader Plastic

Sector: Spare parts

Capital : L.E 3 million

B.I.G

Sector: Real Estate

Capital : L.E 5 million

Youtopia

Sector: Chemicals

Capital : L.E 20 million

International Company for

Fertilizers and ChemicalsSector: Medical Industries

Capital : L.E 16.5 million

Ameco Medical Industries

Sector: Agriculture

Capital : L.E 12 million

Kato Agriculture Development

Page 18: Nilex Market

Sector: Financial Sectors

Guarantee For Securities Exchange

Sector: IT

Pharotech

Sector: Transportation&

post service

Egy Serv

Sector: IT

Al-Moasher

Page 19: Nilex Market

Challenges

Selection ProcessSelection Process

Companies Size& IPOCompanies Size& IPO

LiquidityLiquidity

Current Market ConditionsCurrent Market Conditions

Page 20: Nilex Market

NILEX Future Vision

Supporting the small and medium enterprises to Supporting the small and medium enterprises to

contribute more to the growth and employment.contribute more to the growth and employment.

To Create success stories for the small and medium To Create success stories for the small and medium

enterprises.enterprises.

The effective gate for getting finance the small and The effective gate for getting finance the small and

medium enterprises in Egypt.medium enterprises in Egypt.

To expand regionally and attract more Arabic and foreign companies

to be listed on Nilex.

Page 21: Nilex Market

Nilex.egyptse.com