https://arab.news/nsm96
The Egyptian Financial Regulatory Authority has agreed to allow the establishment and licensing of companies with the purpose of acquisition, known as SPAC.
FRA Chairman Mohamed Omran said the authority’s decision reflects its interest in creating financing solutions that would facilitate the access of investors, especially small and medium-sized companies, to financing in order to support Egypt’s Vision 2030.
He said the authority’s initiative will provide an opportunity for emerging companies especially in the field of technology and digital technologies and investors to achieve the desired investment goals by establishing a specialized company for this purpose whose shares are listed on the stock exchange.
“The proceeds of the subscription will then be used to acquire one or more companies or projects after the subscription,” Omran said.
Omran explained such specialized companies obtain the required financing by offering shares through public subscription and/or a private offering, and the proceeds of the subscription are kept in a bank account under specific conditions until the required acquisition is made within the time period of up to two years, if the planned acquisition is not carried out then the SPAC is obligated to return the funds to the investors, after deducting the prescribed commissions and other expenses.