Providing technical and advisory support for companies wishing to list on the stock exchange

The Deputy Chairman of the Securities Authority, Dr. Omar Al-Zoubi, confirmed that the roadmap project, which is being implemented in cooperation with the European Bank for Reconstruction and Development EBRD, contains more than 100 recommendations for developing the national capital market, as the Authority is following up its implementation in cooperation with the Amman Stock Exchange and the Securities Depository Center.
This came during his speech in a workshop organized by the Amman Stock Exchange via the Internet in cooperation with the European Bank for Reconstruction and Development under the title "The Way to Listing in the Amman Stock Exchange" with the aim of introducing potential issuers of securities to the features of the program to attract exporters and the draft roadmap for developing the national capital market With the participation of the CEO of the Amman Stock Exchange, Mazen Al-Wathafi, the General Controller of Companies, Dr. Wael Al-Armouti, and the technical head of the National Capital Market Development Project, Robert Singletari, and the workshop was moderated by the Executive Vice President of Azmar Invest, Dr. Munther Zaidan, in the presence of the Chairman of the Board of Directors, Dr. Kamal Al-Qudah, and chairmen of boards of directors and executives For a number of private joint stock companies and limited liability.
Reviewed by Dr. Al-Zoubi has the seven strategic objectives of the roadmap, which are to enhance the interest of investors in the Amman Stock Exchange, make the market more attractive to issuers of securities, direct capital market institutions to work according to sector regulations, increase the competitiveness of the financial intermediation sector, enhance the operations and capabilities of the Securities Authority, and provide more investment options. Attractively, rebuilding the credibility of the financial market and raising the confidence of investors in it, noting that each of these goals stems from an action plan, programs and projects within specific time frames.
In order to implement these recommendations, five working teams were formed, represented by the legal and regulatory team, the tax policies team, the restructuring team of the Amman Stock Exchange and the operations of the Amman Stock Exchange and the Securities Depository Center, the advisory team for restructuring the operations of the Securities Commission, and the investment products team. These teams carry out the tasks that fall within the scope of their competence in cooperation with international companies specialized in the financial markets.
Dr. pointed out. Al-Zoubi indicated that the Investor Attraction Program aims to attract successful companies or companies that have expansionary investment aspirations to listing on the Amman Stock Exchange, which helps them achieve a number of benefits and advantages, the most important of which are: access to the required financing at a reasonable cost, and access to technical expertise through strategic partners. Raising the efficiency of marketing and pricing of shares, increasing the base of customers and shareholders, raising the market value of the company, and facilitating the selling process for founders and partners.

Dr. concluded. Al-Zoubi said that the program will provide technical and advisory support from the European Bank to companies that can be listed on the Amman Stock Exchange and that show interest and ability to list. Overcoming listing difficulties and determining the list of companies that can be listed on the stock exchange.

In turn, the CEO of the Amman Stock Exchange, Mazen Al-Wathafi, reviewed the "Initial Public Offering Roadmap to Listing in the Amman Stock Exchange", in which he explained the concept of the Initial Public Offering (IPO) and its basic requirements, in addition to introducing the benefits and advantages of listing in the ASE, the most important of which is the possibility of obtaining the necessary funding to expand the company's business By expanding the investor base and finding an alternative to financing and reducing the risks of relying on financing through existing limited partners, banks and financial institutions, improving the company’s image and position and enhancing the competitiveness of its products by publishing its information in daily, monthly and annual bulletins issued by the stock exchange and the relevant institutions, in addition to the fair evaluation of the company and the possibility of Enhancing the wealth of shareholders through the positive interaction of the forces of supply and demand with the positive performance of the company and its reflection on its share price in the market, and that the listing enhances the company’s credibility and confidence in it through its commitment to disclosure, governance and transparency requirements and the announcement of financial and non-financial information in the company at the times specified in the legislation.
He added that the listed company's commitment to governance instructions enhances its performance and contributes to reducing the possibilities of corruption in it, by separating ownership from management and defining responsibilities, accountability and internal control in the company and the oversight of regulatory authorities. Facing challenges with the same ability and efficiency of management and performance of the first generation.
With regard to the basic requirements for the success of the public offering, Al-Wathafi said that the most important of them is that the company has a record and history of success, positive performance and achieving profits, that the company’s growth prospects are promising, that standards of transparency, disclosure, and effective planning are applied, and that consultants with specialized expertise in the legal, financial and accounting fields are selected. And taxation so that the offering is in accordance with the market requirements and the required size needed to be implemented in the correct manner.
He said that the national capital market enjoys a developed legislative and technical structure in accordance with the latest international standards and practices. And that the costs of listing in the stock exchange are among the lowest in the region and emerging global markets.
Dr. Wael Al-Armouti, General Controller of Companies, also spoke about the most important procedures and requirements for transferring from a private/limited joint stock company to a public joint stock company listed on the stock exchange in accordance with the provisions stipulated in the Companies Control Law, indicating that the transfer of any company to another company does not result in the emergence of a new legal person, but rather The company retains its previous legal personality and retains all its rights and is responsible for its obligations prior to the transfer.
In his turn, the technical head of the project, Mr. Robert Singletari, explained the challenges that a privately owned company may face when evaluating and selling, and how the transformation of public joint stock companies would be a solution to the problems of unfair valuation and how to evaluate companies, indicating that there is no single approved formula for determining the share price in the company.