Adwia Pharmaceuticals is planning to make investments worth around 400 million EGP in 2022

Newsletter

09 Feb 2022

For our top talks today, Adwia Pharmaceuticals is planning to make investments worth around 400 million EGP in 2022, according to the Chairman Mohamed Khattab. The company’s expansion plan covers developing and boosting the efficiency of its factory’s production lines as well as adding new lines, Khattab said. The pharmaceutical company is also planning to release 11 new products in the market this year and to enter new export markets. Moreover, the chairman mentioned that the Egyptian pharmaceutical market is one of the most growing and attractive markets in the region, especially after the establishment of the Egyptian Drug Authority (EDA). It is worth noting that Adwia has a factory spanning a 15-squaremeter space in the 10th of Ramadan City. (Al Borsa Newspaper)

Canal Shipping Agencies (CSAG) reported a 27% year-on-year (YoY) drop in net profit after tax for the first half (H1) of fiscal year (FY) 2021/2022.
Net profit after tax reached 70.50 million EGP in the six-month period ended December 31st 2021, compared to a profit of 97.08 million EGP in the same period of FY 2020/2021. The company’s revenue grew by 53% YoY to 34.91 million EGP in H1 FY 2021/2022 from 22.88 million EGP. Canal Shipping is a subsidiary of the Holding Company for Maritime and Land Transport that provides marine port services and shipping services to international commercial fleets. The company operates four agencies, namely Asswan Shipping Agency, Assuit Shipping Agency, El Menia Shipping Agency, and Damanhour Shipping Agency. (Arab Finance)
Trade exchange between Egypt and Djibouti grew by 39.1% year-on-year (YoY) in the first 10 months of 2021, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
The value of trade exchange between the two African countries recorded 86.5 million USD in the first 10 months of 2021, versus 62.6 million USD in the same period of 2020. Moreover, the value of Egyptian exports to Djibouti rose by 37.5% year-on-year (YoY) in the first 10 months of 2021. Egyptian exports to Djibouti recorded 82.3 million USD in the January-October period of 2021, versus 59.8 million USD in the same period of 2020, the CAPMAS highlighted. On the other hand, Egyptian imports from Djibouti valued at 4.3 million USD in the 10-month period ended October 2021, jumping by 79.2% from 2.4 million USD in the corresponding period of 2020. (CAPMAS)
Additionally, the CAPMAS pointed out that remittances from Egyptian expats living in Djibouti fell by 8.3% to 2.2 million USD in fiscal year (FY) 2020/2019, compared to 2.4 million USD in FY 2018/2019.
Meanwhile, remittances from Djiboutian expats living in Egypt dropped by 56.2% to 81,000 USD in FY 2019/2020 from 185,000 USD in FY 2018/2019. In FY 2019/2020, Djiboutian investments in Egypt registered 48,000 USD, down by 56.8% from 111,000 USD in FT 2018/2019. (CAPMAS)
In a similar context, the total number of subscribers to broadband internet services in Egypt reached 9.99 million in November 2021, according to CAPMAS.
This marks a 14.96% year-on-year (YoY) growth as compared to 8.69 million subscribers in November 2020, the CAPMAS pointed out. Meanwhile, the total number of subscribers to high-speed mobile internet services stood at 65.08 million in November 2021, up by 19.37% from 54.52 million users in November 2020. (CAPMAS)
Likewise, the National Telecommunication Regulatory Authority (NTRA) announced the allocation of new 30-megahertz (MHz) frequencies within 2,600 band to Orange Egypt via time-division duplexing (TDD).
The new frequencies have been allocated in return for 440 million USD and are set to be used for providing mobile phone services in Egypt. This move comes as a complement to the process initiated by the NTRA to allocate new frequency bands of 80 MHz within 2,600 band via TDD. These frequencies were allocated to Vodafone Egypt, Telecom Egypt (ETEL), and Etisalat Egypt at a value of 1.17 billion USD. The newly agreement signed between the NTRA and Orange Egypt brings the total value of frequencies allocated for the four mobile operators within the 2,600 MHz to 1.61 billion USD. This comes in line with the inclusive plan aiming at enhancing the quality for mobile users in Egypt and booting telecom services, in terms of voice and data, in Egypt as per global standards. (National Telecommunication Regulatory Authority (NTRA))
Moving to our EGX and companies talks, Misr Capital arranges 3 sukuk issues for listed companies, according to Khalil Al-Bawab, CEO and Managing Director of the company.
The issuance of Islamic Sharia-compliant sukuk by Egyptian companies amounted to 2.5 billion EGP in 2021, less than half of the 5.1 billion EGP issued the previous year. Al-Bawab predicted “a boom in the sukuk market in Egypt this year, with corporate issuances exceeding 10 billion EGP, after we had one issue last year, in cooperation with Sarwa Capital, worth 2.5 billion EGP. (Bloomberg Asharq)
In addition, Misr Capital, which was established in 2010, is working this year to issue securitization bonds for a number of companies, "with a value ranging between 7 and 8 billion EGP so far, and the first issuance will be during the second quarter of this year as well."
The volume of securitization bonds and sukuk issuances carried out by Misr Capital in 2021 amounted to about 9.5 billion EGP. Misr Capital aspires to increase the assets it manages to 45 billion EGP in 2022, compared to 39 billion EGP at the end of 2021. Misr Capital has 13 investment funds, most of which are fixed income and liquidity funds, and three of them are equity and capital protection funds. (Bloomberg Asharq)
Mastercard has signed a five-year agreement with Egypt-based Kashat for the digitization of the onboarding, disbursement, and collection processes of Kashat App.
Under the agreement, Kashat will be capable of issuing prepaid cards to users and providing them with secured and suitable ways to withdraw money. This partnership also enables users of Kashat App of repaying their loans using Mastercard’s technology and payment rails. The signed agreement marks the commitment of both entities in driving financial inclusion in Egypt. (Arab Finance)
Khales, e-finance for Digital and Financial Investments’ (EFIH) retail arm, has obtained the approval of the Financial Regulatory Authority (FRA) to be registered as an e-payment collection company for insurance installment fees.
Accordingly, this will enable the collection of Decent Life’s insurance installment through Khales’ retail network, which includes 13 strategic partners and over 330,000 points of sale (PoS) across the country. This marks e-finance’s first milestone in the digital transformation for the insurance industry. Through its strategy, Khales seeks to digitalize the non-banking financial services and to contribute to Egypt Vision 2030 by supporting digital transformation and achieving financial inclusion. (Arab Finance)
The Egyptian Exchange (EGX) announced that the completion of the initial public offering (IPO) and private placement of 45.8% of Macro Group Pharmaceutical’s (Macro Capital) (MCRO) issued capital at a total value of 1.28 billion EGP or 4.85 EGP per share.
The IPO has been implemented on 13.225 million shares, representing 5% of total offered shared for sale. Meanwhile, the private placement has been carried out on 251.28 million shares, representing 95% of total offered shares. Trading on Macro Capital’s issued shares is set to begin as of February 10th at a price of 4.85 EGP per share. Founded in 2002, Macro Group is a leading Egyptian cosmeceutical company based in Cairo. (EGX)
Zahraa Maadi Investment and Development (ZMID) announced that its ordinary general meeting (OGM) has approved raising the company’s issued and paid-up capital by 264 million EGP to 528 million EGP.
The capital increase will be financed from the company’s profit as per the financial statement for the year ended December 31st 2020. Moreover, the OGM agreed on the amendment of Articles 6 and 7 of the company’s Articles of Association. Zahraa Maadi is an Egypt-based public shareholding company engaged in real estate development, construction, contracting, urbanization, housing, and tourism, as well as other investment activities. (EGX)
And finally, Nozha International Hospital (NINH) announced that its board of directors has approved raising the company’s issued and paid-up capital to 131.83 million EGP from 105.46 million EGP.
The capital increase amounts to 26.36 million EGP distributed over 26.36 million shares at a nominal value of 1 EGP per share. Accordingly, a 0.25-for-1 bonus share shall be distributed to shareholders. The capital hike is set to be financed from the company’s retained earnings of 114.86 million EGP as per the financial statements for the period ended December 31st 2021.