Arab Finance: Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority, agreed Establishing the first venture capital company For the purpose of acquisition (SPAC), according to Resolution No. (2323) of 2024, the company bears the name Catalyst Partners Middle East (cpme), and the company’s issued and paid-up capital amounts to about 10 million pounds.
At the end of last July, the Financial Supervision Authority received a request from Catalyst Partners, a consulting company, to establish the first acquisition company (SPAC) through its legal advisor, Matouk Bassiouny and Hinnawi’s office, after the issuance of Financial Regulatory Authority Board of Directors Resolutions No. 140 and 148 of 2024. As a venture capital company for the purpose of acquiring companies operating in the field of non-banking financial services and financial technology in the fields of finance, various financial services and payment platforms.
This came as a quick response to the regulatory decisions issued by the Financial Supervision Authority introducing amendments to the rules for listing and delisting securities, which regulated the registration and delisting of shares of companies with the purpose of acquisition in the stock exchange tables, pursuant to Resolutions No. (140) and (148) of 2024, regarding developing the rules for listing and delisting. Securities on the Egyptian Stock Exchange, by amending the Authority’s Board of Directors’ Decision No. (11) of 2014, which regulates the process of listing and trading shares of companies with the purpose of acquisition (SPAC).
This step aims to open a new financing channel through the Egyptian Stock Exchange for non-banking financial activities and digital platforms operating in the field of financial technology in light of the opportunities enjoyed by both sectors: non-banking financial institutions (NBFIs) and emerging companies in the field of technology and financial digitization (FinTech) to expand the base of beneficiaries of… Non-banking financial activities.
Companies with the purpose of acquisition are companies that are established and licensed by the Financial Supervisory Authority as a risk capital company with the sole purpose of acquiring other companies in various economic sectors. They obtain the necessary financing to carry out acquisition operations by offering to increase their capital in a private subscription through… The stock market, provided that subscription to its capital increase is limited to qualified investors and qualified financial institutions, as well as trading to qualified entities only. The company is committed to acquiring companies within a maximum period of two years from the date of their temporary registration on the stock exchange, in accordance with specific controls and requirements.
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