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Thursday, 24 June 2021

Giving small-caps a chance to shine?

Tamayoz, Nilex’s new revamped small-cap index, is up and running as of yesterday’s trading session. Tamayoz replaces the NileX index and is designed to help draw attention to listed SMEs with solid fundamentals that are also significant growth stories. The new inclusion criteria, according to EGX boss Mohamed Farid:

  • A four-year revenue compound annual growth rate (CAGR) of 10% or more — or revenues of more than EGP 10 mn over the past year in the event that their four-year revenue CAGR is below 10%;
  • Positive cash flow in the past two years;
  • A minimum freefloat of 10%.

Bringing the rest of the pack to the fold: So far, only eight out of the current 26 NileX companies have been included in the Tamayoz index. But Farid is looking to help the other companies meet eligibility criteria by providing them access to nominated advisers in a program that is 75% funded through the EBRD. These advisers will also help drum up business for the small- and mid-cap exchange.

And that seems to be encouraging small-caps to list: Farid says there are 10 companies interested in talking about possible Nilex listings.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.