(MENAFN- Daily News Egypt) Catalyst Partners Middle East (CPME) marked a milestone on Sunday with a“Ringing the Bell” ceremony at the Egyptian Exchange (EGX), celebrating its listing as Egypt's first Special Purpose Acquisition Company (SPAC).
The event was attended by Ahmed El-Sheikh, Chairperson of the EGX; Heba El-Sayegh, Deputy Chairperson of the EGX; Maged Shawky, Chairperson of CPME; and Tarek Effat, Managing Director of CPME. Also present were several executives from both the EGX and CPME.
El-Sheikh described CPME's launch as a significant development for Egypt's capital market, aligning with the governance and transparency standards set by the Egyptian Financial Regulatory Authority (FRA). He emphasized that the EGX's primary role is to act as a platform for financing and investment, enabling companies to access growth capital through diverse means, including capital increases and bond issuances. El-Sheikh noted the recent listing of numerous companies in both the main and SME markets, underscoring the exchange's pivotal role in supporting corporate growth and expansion.
Maged Shawky hailed the launch as a turning point, solidifying Egypt's position as a regional hub for innovative financial investments. He revealed plans to increase CPME's capital to approximately EGP 235 million through a private placement of 22,500,000 shares at a par value of EGP 10 per share, raising EGP 225 million in cash under FRA regulations.
Shawky stated that CPME aims to execute several acquisitions in promising sectors, particularly financial services and fintech, marking the start of a transformative phase in Egypt's financial landscape.“We are committed to innovation and attracting capital that drives sustainable growth in the Egyptian market,” he said.
Expressing his pride in the achievement, Tarek Effat highlighted the significance of Egypt's first SPAC launch.“This reflects our deep belief in the Egyptian market's potential and our commitment to providing innovative financial solutions aligned with global practices,” he said. Effat stressed that the initiative would empower emerging and medium-sized companies by providing sustainable financing channels, enhancing the market's appeal to local and international investors.
Effat also thanked the EGX and FRA management for their support, acknowledging that the milestone was achieved through their cooperation and facilitation.
SPACs, which raise capital through private placements to acquire or merge with high-growth-potential companies, represent a novel financial instrument. By enabling emerging and medium-sized companies to secure necessary financing, SPACs contribute to economic development and bolster Egypt's future growth prospects.
MENAFN25112024000153011029ID1108921519
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.