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The general manager of the Libyan Stock Exchange has confirmed that one of the new stocks to be listed this year . . .[restrict]will be a real-estate fund.
Ahmed Karoud said the fund, which would be open to individual investors and private companies was likely to be established by June. The Libya Herald reported February 10 that the LD500 million investment vehicle, to be known as The Libya Reconstruction Fund will be open-ended and mature after five years.
This week Karoud told Bloombergs that a second fund, for LD250 million operating under the principles of Sharia finance, would however be closely held and was unlikely to be traded on the exchange. This vehicle is also due to be launched in the summer.
Karoud confirmed that at present the only Initial Public Offerings in the pipeline remain the two mobile operators Al-Madar and Libyana.
A number of start up ventures which have already attracted private investors are known to be thinking of broadening their investment base by seeking a listing.
However, one entrepreneur told Libya Herald: “ The challenge at the moment is liquidity and transparency. The exchange has not proven yet that it has the former and there needs to be clarification of the rules, especially in terms of foreign investment.
“ I am sure that many expatriate Libyans who have done well abroad would value the chance to buy into our recovery. But there is not sufficient ”comfort” for them in terms of the protection of any investments and the repatriation of dividends and capital gains. This applies equally to foreign investors who are already experienced in taking on risk in other emerging markets”. [/restrict]
