Misr Life Insurance is moving ahead with plans to split the nominal value of its shares to EGP 1 from EGP 10, a step aimed at broadening its investor base and increasing trading activity ahead of its planned offering on the Egyptian Exchange (EGX).

 

The Financial Regulatory Authority (FRA) approved the company’s request to proceed with the share split and authorized it to call an extraordinary general meeting to consider the move.

 

The split would increase the number of issued shares to 5 billion from 500 million, while leaving the company’s issued capital unchanged at EGP 5 billion.

 

The FRA said the move is intended to increase the number of shares available for trading and the proportion of free-float shares on the EGX, helping attract a broader investor base and boost trading after the planned offering.

 

Misr Life Insurance’s board approved the split at its September 17 meeting and will call the extraordinary general meeting within a week of publishing the disclosure on the EGX trading screens.

 

The company was granted temporary listing approval by the EGX Listing Committee in March with issued capital of EGP 5 billion.

 

Egypt’s Sovereign Fund also invited investment banks and specialized financial institutions in March to submit technical and financial proposals to manage the promotion and underwriting of the offering of up to a 20% stake in the company, which is wholly owned by Misr Insurance Holding Company, an affiliate of the fund.

 

The offering forms part of the government’s State Ownership Policy and its program to expand private ownership of state-owned companies and accelerate listings on the EGX.