Privatization of the Beirut Stock Exchange

According to Business News, the Beirut Stock Exchange (BSE) will be established as a joint stock company, based on the decision of the Council of Ministers. The aim behind the privatized of the bourse will be to enhance the BSE’s operations since more private firms will have the incentive to list their securities. In details, “The bourse will accept listings of shares, bonds, certificates of deposits, units (shares) of collective investment schemes (investment funds), securitization instruments, and any other securities or financial instruments that can be listed and traded on bourses. Commodities can also be listed, such as raw materials and metals, in addition to precious metals like gold. It will also allow the listing of shares in small and medium enterprises (SMEs)”

In fact, the new private BSE is set at LBP 100M split into 100,000 shares, each with a nominal value of LBP 1,000, yet it could grow further by either issuing new shares or converting reserves into stocks. “The shares could be sold in an initial public offering (IPO), in a private placement, or by other means. The potential shareholders should have the financial capabilities and technical knowhow to operate the stock exchange”. However, shareholders are not allowed more than 10% of the total shares, unless an approval from the Council of Ministers is issued.

As for the new BSE board, it will comprise 2 of the existing BSE members, 3 executive board members from the CMA, and 2 members of the Ministry of Finance.

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