EGX executive chairman on short-selling, IPO pipeline, S&P review

We sat down with EGX boss Omar Radwan for a wide-ranging conversation about where the exchange stands

The S&P DJI consultation closed Friday, and Radwan says the EGX’s formal reply leaned heavily on the macro turnaround.

REFRESHER- a deadline that slipped

On short-selling, the news is more immediate than the “ before the end of August ” timeline previously suggested.

REMEMBER- floated short-selling in 2019

Edited excerpts from our conversation:

: How do you think S&P DJI will react to Egypt’s formal reply?

E: Short-selling was first promised some seven years ago; what’s mechanically different this time?

E: EGX70 futures and options are supposed to be next in the derivatives rollout. Is there a date, or does it depend on single-stock picking up volumes first?

ICYMI- Our derivatives market is already live and growing the benchmark EGX30 index in June more single-stock futures, EGX70 futures, and options

E: Why doesn’t the EGX publish cumulative derivatives volume, and when will that change?

E: Of the 20 state-owned companies with temporary listings, how many do you expect to complete full IPOs in the next 12 months?

Meanwhile, the EGX is open for business for large corporate listings from both the private and public sectors. We met with the Finance and Investment Ministers today regarding new regulations: companies with over EGP 15 bn in market capitalization qualify for a 15% tax discount for three years, extendable, to help us compete for mega-listings and rebalance the index.

E: What’s the status on the GDR program and cross-listing more broadly?

E: It was recently mentioned that names like Mopco, PMS, and Elab will trade in USD once on the EGX, and that they are considering a Saudi dual listing. Why Saudi specifically?

E: You’ve floated the EGX itself becoming a joint-stock company. What would that actually change, and would the EGX list itself?

IN CONTEXT- a 2021 IPO in 2020

E: You’ve got derivatives, short-selling, and the S&P consultation all in motion right now. Does a one-year term give you enough runway to actually see all of that through?

SOUND SMART- was appointed

E: A year from now, what is the one thing you would want to point to and say: that is what changed while I was here?