Out of its leading role in supporting and developing the Egyptian ICT industry, Information Technology Development Industry Agency (ITIDA) held a forum to encourage the small and medium ICT companies to be listed on Nile Stock Exchange for small and medium companies.
The forum is organized in the awake of the invitation presented to the leaders and decision makers for more than 100 ICT SMEs.
This step aims to allow ITIDA, with the participation of NILEX, detail technical and financial support to IT companies interested in listing on Nilex Stock for Exchange.
In addition, the forum also revealed the benefits of being listed in the stock exchange. Getting the company required funding, access to long term capital for the expansion of their businesses, determining a fair value of the company, and maximizing the market value of the listed companies are some of these benefits.
Companies listed on Nilex undertake margining processes easily with their counterparts to create more competitive entities on both local and foreign levels. Shareholders rights in the listed company are protected; in line with granting facilities to the shareholders phasing out, once desired, from such companies particularly the family- owned businesses.
CEO of ITIDA, Mr. Yasser El Kady, stated that SMEs are the Egyptian economy backbone and should be financed and supported to get integrated to form largest entities. This will, in turn, promote IT industry and extend a helping hand to attract Arab and foreign investors.
Mr. Yasser also added that this cooperation between ITIDA and Nilex aims at motivating such firms to duplicate their capitals and penetrate new markets, for their benefit and with good impacts on the national economy.
Chairman of the Egyptian Exchange Stock, Mr. Mohamed Abdel Salam, said that the management is keen to develop Nilex for the small and medium projects as being the first Arab exchange platform for the SMEs. This is due to the fact that this Arab exchange platform provides tributary of funding attracting all the companies interested in expanding their businesses and projects in all sectors.
The Egyptian Exchange Stock chairman indicates also that Entrepreneurship comes not only with being the first but with also maintaining the attained success via a multi-stages plan targeting to develop Nilex and the current exchange system to suite the requirements of both the market and the investors.
Abdel Salam pointed out in this respect that Nilex targets many sectors particularly the sectors marked by increasing growing rates such as the ICT sector.
The Egyptian Exchange chairman stressed on the importance of the Nilex Exchange as a strong exchange platform financing and helping Egyptian ICT companies to expand, providing new job opportunities and offering new products and services taking part in increasing the national outcome, of which 48 % depends on the services’ sectors.
The speech Of Mr. Abdel Salam came within the participation of The Egyptian Exchange Stock in the forum held by ITIDA to have the ICT Companies’ aware of the importance of joining Nilex Exchange Stock, on which more than 100 IT companies have been participating.
It is worth mentioning that small and medium companies are playing a central and leading role in the Egyptian economy as they share about 75 % of the economic growing and 80 % of the working labor. In spite of the importance of such companies, they are often facing funding problems once desiring to expand their activities and enter new markets.
Based on the international model, the SMEs companies have witnessed a distinguishing growing opportunities after the listing process and started to get the required finance.
It should be noted that there are 17 SMEs from different sectors and industries currently listed in the Nilex Exchange Stock, and 3 other companies specialized in ICT. On the other hand, there are 2 other companies specialized in the same field currently taking the required listing procedures on Nilex.
Nilex Exchange has been established with the end of 2007 and witnessed the launching of the first trading session in 2010.
It is the first market targeting growing medium and small companies in the MENA region and North Africa offering them the required funds to expand and achieve growing rates that enhance their competitive capabilities. This is also reflected in providing a lot of job opportunities.
Nilex Exchange aims at creating new markets for promising companies regardless of their country and/or industry, including the family-owned businesses interested to become joint stock companies with wide range of investors.
