** #3 REGULATION WATCH- Egyptian stock exchange goes to tiered system for annual listing fees, seeks SME listings: Prime Minister Moustafa Madbouly issued a decree amending listing fees for companies on the Egyptian Exchange. The decree is now law after having been published in the Official Gazette on Sunday. Listed companies will pay the new schedule of fees at the start of every calendar year in January. The fees — which have been capped at EGP 500k a year — will be calculated based on each company’s capital, with the new guidelines categorizing companies into five categories:

• Companies with up to EGP 12.5 mn in capital will pay an annual fee equivalent to 0.2% of their capital;
• Companies with capital ranging from over EGP 12.5 mn-100 mn will pay 0.15%;
• Companies with capital ranging from over EGP 100 mn-300 mn will pay 0.075%;
• Companies with capital ranging from over EGP 300 mn-500 mn will pay 0.05%;
• Companies with capital over EGP 500 mn will pay 0.025%.

Listed SMEs given 50% discount: Companies not listed on the main market — such as those listed on the Nilex — will be given a 50% discount on their listing fees. Issuers with up to EGP 12.5 mn in capital will pay an annual fee equivalent to 0.1% of their capital, while companies with capital ranging from over EGP 12.5 mn-100 mn will pay 0.075%.

The decision also sets fees for listed and traded debt instruments at 0.2% of the value of the security, with a cap of EGP 50,000 being set. Those are payable only at the time of the issuance.

Background: Prior to the decision, all listed companies had to pay annual listing fees of equivalent to 0.2% of their capital, with a cap of EGP 500k. The new regulations cut listing fees for all companies listed on the main bourse with capital of over EGP 100 mn with a sliding scale to make capital increases ultimately less costly.