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Consulting services for listing of companies on stock exchanges

Most companies want to expand and develop, which requires more money. Because bank loans are useless because of their high interest, which doesn’t take into account whether the loan has achieved profit or loss, most turn to the idea of listing of companies on stock exchanges.

the main goal of listing of companies on stock exchanges is to finance projects, which helps to develop and increase the production of the company and keep its shares high.

Trading on the stock exchange can greatly increase the financial worth of a company due to the frequent displaying of its name on screens and magazines, increasing its reputation and customer demand.

This does not mean that every company can enter the stock exchange world. There are several conditions that must be met before companies are listed on the stock exchange but at the beginning of this article, we’re going to find out what an exchange is. 

خدمات الإستشارات المرتبطة بتقييم و طرح الشركات في البورصة​ | ECPA

What is meant by the stock market?

 The exchange is a legal person and it has been accredited by the government. It also falls under the public domain, but its main function is to register and trade securities such as stocks, bonds, investment fund documents, and closed investment funds.

listing of companies on stock exchanges and trading is supervised by the General Financial Supervisory Authority. The trading process, whether selling or buying, is managed through a broker or an accredited company as an agent for the investor to trade.

Trading is not allowed for investors who do not have a trading license issued by the regulatory authority. The price of securities is determined based on supply and demand.

ما المقصود بالبورصة؟ | ECPA

What is meant by the stock market?

 The exchange is a legal person and it has been accredited by the government. It also falls under the public domain, but its main function is to register and trade securities such as stocks, bonds, investment fund documents, and closed investment funds.

listing of companies on stock exchanges and trading is supervised by the General Financial Supervisory Authority. The trading process, whether selling or buying, is managed through a broker or an accredited company as an agent for the investor to trade.

Trading is not allowed for investors who do not have a trading license issued by the regulatory authority. The price of securities is determined based on supply and demand.

ما المقصود بالبورصة؟ | ECPA

The requirements for companies to list on the stock exchange.

Applying for trading on the stock exchange is not available to everyone. If you want to grow your company and need to know how to evaluate companies applying for registration on the stock exchange, you should pay attention to the need to meet these conditions in your company:

  • The advanced trading company should be an Egyptian joint stock company and has the approval of the General Financial Fund Supervisory Authority.
  • The company has regular, excellent, cash or in-kind shares.
    One of the conditions for listing of companies on stock exchanges is to have financial statements for the previous year to apply for registration.
  • Financial statements are prepared according to Egyptian accounting laws and are reviewed according to Egyptian auditing laws.
  • One of the conditions of registration, when companies are put on the stock exchange, is that the company achieves a net profit of at least 5% of the company's initial capital.
  • The capital of your company can be charged shall not be less than 50 million pounds and the number of shareholders is not less than 500 shareholders.
  • The share system in companies is that the number of shares shall not be less than 5 million shares. The number of shares owned by shareholders, board members and founders shall not be less than 25% of those shares, and the number of shares offered must not be less than 10%.
  • Shares must be deposited in the central depository system.
  • Owners and shareholders retain their shares for more than two years before companies are put on the stock exchange.
  • Full compliance by the company that wishes to register on the stock exchange with the text of the notarized contract between the Stock Exchange and Egyptian rules and standards.
كيف يتم طرح الشركات في البورصة؟ | ECPA

How are companies listed to the stock exchange?

  • Prepare registration documents on the stock exchange.
  • They are reviewed by the competent department to review registration applications and decide whether or not the company meets the requirements and whether or not they have been accepted.
  • After accepting the company, a report is published to disclose the purpose and implementation of the offering.
  • The final stage is to put and trade the company's shares in one of the stock markets.
  • Companies are in great need of strong technical support and specialists to give informed guidance and unique financial advice for the listing of companies on stock exchanges.

How are companies listed to the stock exchange?

  • Prepare registration documents on the stock exchange.
  • They are reviewed by the competent department to review registration applications and decide whether or not the company meets the requirements and whether or not they have been accepted.
  • After accepting the company, a report is published to disclose the purpose and implementation of the offering.
  • The final stage is to put and trade the company's shares in one of the stock markets.
  • Companies are in great need of strong technical support and specialists to give informed guidance and unique financial advice for the listing of companies on stock exchanges.
كيف يتم طرح الشركات في البورصة؟ | ECPA

What documents are required to register on the stock exchange?

Documents proving the company’s existence such as:

  • A recent certified copy of the company’s commercial register.
  • The company’s system published in a companies’ newspaper or investment newspaper.
  • Official and notarized approval by the Financial Supervisory Authority to list companies on the stock exchange and trade the company’s shares.
  • Application documents for registration on the stock exchange.
  • A certified copy of the company’s legal representative’s power of attorney to authorize an agent to deal with the exchange and terminate the registration procedures.
  • A typical exchange registration request signed by the company’s legal representative.
  • Agreement between the exchange and the legal representative of the company and signed by him.
  • Copies of receipts for fees paid for enrollment, services, etc.
  • Registration forms stamped by the company.
  • Documents confirming the position of the company’s shares in the central deposit system.
  • Documents related to the company’s financial position.
  • Reports on the fiscal year prior to the listing of companies on stock exchanges.
  • A copy of the General Assembly minutes certified on the company’s recent financial statements.
  • A document signed by the auditor approved by the Financial Supervisory Authority confirming capital growth and means of repaying them.
  • Disclosure report prepared for the purpose of listing of companies on stock exchanges:

The report covers many aspects such as company statements, contact and registration, statements of board members, number of shareholders and founders, stock offering statements, names of auditors, summaries of financial statements, financial position and others.

  • An informed report from an independent financial consulting company on the result of the company’s financial evaluation:

Provide a summary of the result of the valuation, asset revaluation, an overview of the company, the labour market, and the estimated financial statements for 10 years.

  • The plan for listing of companies on stock exchanges:

An explanation of the purpose of the listing of companies on stock exchanges, the plan for timeline implementation, the drawing of the ownership structure

Benefits of listing companies on the stock exchange

Recently, many large companies that want to expand have moved more towards offering their shares for trading via the exchange. As we said earlier, the stock exchange is considered a financial partner in the expansion of the company better than the bank. It also has many other benefits such as:

  • Listing of companies on stock exchanges prompts business owners and all their teams to pay attention to making the company more successful and strive to increase its production and raise its sales.
  • A company with high shares is very attractive for investors and giant institutions.
  • Entering the stock exchange world makes companies more compliant with governance and control laws, more disciplined and abiding by Egyptian laws
  • The big free advertising that companies receive after launch will greatly increase their sales and fame.
  • The fair financial assessment obtained by a company through certified financial instruments and competitions with other companies.
  • Listing of companies on stock exchanges necessarily increases the effectiveness of the capital market and its attractiveness for money.
  • Reducing risk because investors and shares’ buyers are subject to the Financial Supervisory Authority and the Stock Exchange.
فوائد طرح الشركات في البورصة | ECPA

Benefits of listing companies on the stock exchange

Recently, many large companies that want to expand have moved more towards offering their shares for trading via the exchange. As we said earlier, the stock exchange is considered a financial partner in the expansion of the company better than the bank. It also has many other benefits such as:

  • Listing of companies on stock exchanges prompts business owners and all their teams to pay attention to making the company more successful and strive to increase its production and raise its sales.
  • A company with high shares is very attractive for investors and giant institutions.
  • Entering the stock exchange world makes companies more compliant with governance and control laws, more disciplined and abiding by Egyptian laws
  • The big free advertising that companies receive after launch will greatly increase their sales and fame.
  • The fair financial assessment obtained by a company through certified financial instruments and competitions with other companies.
  • Listing of companies on stock exchanges necessarily increases the effectiveness of the capital market and its attractiveness for money.
  • Reducing risk because investors and shares’ buyers are subject to the Financial Supervisory Authority and the Stock Exchange.
فوائد طرح الشركات في البورصة | ECPA

Consulting services related to evaluating and listing of companies on stock exchanges

Companies that take out bank loans to fund their investments and grow their business often fail to do so, and the profits they make go towards paying off these loans. These companies are advised to use chartered accountant firms or financial consulting firms which advises them to look into sisting of companies in the stock exchange, a better and more economical solution.

successful companies need successful and expert financial consulting firms to achieve their desired goal, which is what we provide in ECPA, one of the largest accounting offices in Egypt.

We not only offer the steps to establish companies in Egypt, but from the moment of your company’s birth and during its successful years, we are working to prepare all the difficult requirements for listing of companies on stock exchanges.

Our advisory services include:

  • Building an integrated book and documentary cycle, in addition to strong internal and external audit systems during their life stages.
  • Prepare the company’s organizational structure accurately and brilliantly in accordance with its various stages.
  • Raise the level of production and improve the quality of the product or service provided.
  • Optimize the exploitation of all human cadres in the company and raise their efficiency.
  • Prepare annual, periodic and quarterly financial statements to monitor the financial situation of the company and identify and address its strength or weaknesses points.
  • We help our clients to have an accurate and fair financial assessment of their companies.
  • ECPA is the best asset valuation company in Egypt. We help you reassess assets accurately and quickly.

ECPA has a vast team of consultants and specialists in providing the best accounting, law, auditing, financial evaluation, consulting and corporate establishment services. They work around the clock to serve your company. Our goal is always and never our client’s satisfaction and success because it is part of our success.

Your first consultation with us is totally free, please feel free to request it now.