Egypt’s Swvl Transfers Nasdaq Listing to Lower Exchange Amid Compliance Challenges

Swvl Holdings Corp (“Swvl” or the “Company”) (Nasdaq: SWVL), a global provider of transformative tech-enabled mass transit solutions, announced today that it has received approval from the Nasdaq Stock Market to transfer its listing from the Nasdaq Global Market to the Nasdaq Capital Market. The trading on the Nasdaq Capital Market commenced on July 19, 2023, under Swvl’s current ticker symbols, “SWVL” and “SWVLW.” The move comes as the company seeks to address compliance challenges and ease the burden of stringent financial requirements and corporate governance standards.

Swvl

The Nasdaq Capital Market operates similarly to the Nasdaq Global Market, but it caters to smaller companies that may not meet the more rigorous listing criteria of its higher-tier counterpart. This shift allows Swvl to align with a platform that accommodates businesses in earlier stages of development and with lower market capitalization, making it more accessible for companies navigating their growth phases.

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Furthermore, Nasdaq has granted Swvl an exception in connection with the delayed filing of its Annual Report on Form 20-F for the year ended December 31, 2022. The company now has until October 30, 2023, to file its 2022 20-F and regain compliance with the listing rules. This move offers a lifeline for Swvl to resolve its compliance concerns and focus on enhancing its operations.

Swvl, known for its global provision of transformative tech-enabled mass transit solutions, offers various transportation services, including intercity, intracity, B2B, and B2G transportation. Their platform provides semi-private alternatives to public transportation, catering to individuals who lack access to or cannot afford private options. By facilitating parallel mass transit systems, Swvl empowers individuals to travel efficiently, safely, and environmentally friendly, giving them the freedom to travel whenever and wherever they desire.

Customers can easily book their rides through Swvl’s proprietary app, which offers various payment options and access to high-quality private buses and vans. With a vision of making mobility accessible and convenient, Swvl’s innovative solutions have garnered attention and patronage from individuals seeking reliable transportation alternatives.

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In the past, Swvl listed on the Nasdaq Global Market, which, unlike the Nasdaq Capital Market, is reserved for larger and more established corporations that meet higher financial standards and possess a larger market capitalization. By moving to the Nasdaq Capital Market, Swvl aims to alleviate the burden of compliance and align its listing with a platform that better suits its growth trajectory and business stage.

The primary differences between the two listing platforms include:

Nasdaq Capital Market:

  • Lower tier of the Nasdaq Stock Market.
  • Intended for smaller companies that do not meet the stringent requirements of the Nasdaq Global Market.
  • Typically includes businesses with lower market capitalization and earlier stages of development.
  • Listing requirements are slightly less strict, making it more accessible to smaller enterprises.

Nasdaq Global Market:

  • Higher tier of the Nasdaq Stock Market.
  • Designed for larger and more established companies meeting higher financial standards and possessing a larger market capitalization.
  • Listing requirements are more stringent, making it more exclusive and suitable for larger corporations.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard