Ghazl El Mahalla IPO still fails to reel in retail investor interest
Ghazl El Mahalla IPO still fails to reel in retail investor interest. Ghazl El-Mahalla Football Company failed to reach the secondary market in the Egyptian Stock Exchange, after the subscription process in the primary market ended without achieving the target. The coverage ratio of the public offering of the shares of “Ghazl El-Mahalla Football” company reached about 18%, with 17.609 million shares out of a total of 98 million shares that were offered at a price of 1.02 EGP per share. (Asharq Business)
- Emaar Misr acquires 25% of Eagle Hills Egypt.
Emaar Misr for Development (EMFD) has acquired 25% of Eagle Hills Egypt for Projects Management and Investment’s capital. This came as part of the signed partnership contract between Emaar Misr and Eagle Hills Egypt. On June 22nd, Emaar Misr’s ordinary general meeting (OGM) agreed to enter into a partnership with the Egyptian unit of the Abu Dhabi-based developer Eagle Hills in a residential, tourism, and commercial project in Egypt’s North Coast. (Al Mal)
- Concrete Plus buys additional stake in Rameda for 2.6 million EGP.
Concrete Plus for Engineering and Construction has purchased a further stake in Tenth of Ramadan for Pharmaceuticals Industries and Diagnostic Reagents (Rameda) (RMDA) of 940,000 shares at a total value of 2.62 million EGP. Accordingly, Concrete Plus has raised its stake in Rameda to 5.017% from 4.92%. The transaction was executed at an average price of 2.792 EGP per share. (EGX)
- Abu Qir Fertilizers to set up new joint stock company.
The board of directors of Abu Qir Fertilizers and Chemicals Industries Company (ABUK) agreed to the establishment of a new joint stock company under the name of North Abu Qir Company for Agricultural Nutrients. The new company will be set up for the production of ammonia with a capacity of 1,200 tons per day, nitric acid with a capacity of 1,830 a day, and granular ammonium nitrate with a capacity of 2,400 tons a day. North Abu Qir Company will be built on the land area owned by the Egyptian General Petroleum Corporation (EGPC). The authorized capital of the new company amounts to 10 billion EGP, and its issued and paid-up capital is 1 billion EGP. (EGX)
- Moving to industries and economy talks, the yield on Egyptian treasury bills is down 5 points for the first time since last May.
The decline comes amid an abundance of liquidity in Egyptian banks. The yield of Egyptian treasury bills fell for the first time since May 24, about 5 points in a 91-day bill auction, to record the highest return of 16.10%, compared to 16.15% a week ago. This comes in the first tender after the meeting of Hassan Abdullah, Acting Governor of the Central Bank of Egypt, last week.
- In light of the availability of great liquidity in the market, the Central Bank of Egypt sold on behalf of the Ministry of Finance 38.193 billion EGP, out of about 88.343 billion EGP offered by banks in yesterday's tender.
We believe the liquidity is very abundant in the market, so the decline was in yesterday's bid. Last Tuesday, the Central Bank of Egypt withdrew, for the second time in a row, 100 billion pounds of surplus liquidity at banks operating in the country during the weekly bid for open market deposits, with a return of 11.75% of the total 374.6 billion EGP offered by 20 banks during the bid. The deposit mechanism is one of the open market tools for managing the volume of liquidity, and absorbing its surplus with the Egyptian banking system, in order to control liquidity in the market, and it aims to reduce the size of the money supply from the pound, in addition to curbing inflation. (Asharq Business)
- Madbouly, CBE’s governor explores monetary policy indicators.
Prime Minister Mostafa Madbouly held a meeting with Governor of the Central Bank of Egypt (CBE) Hassan Abdallah to discuss key monetary policy indicators. Madbouly and Abdallah also explored the positive effects of recent decisions by the CBE including the cancelation of the maximum limit for cash deposits for both individuals and corporates. The two officials discussed a group of time-bound proposed measures for addressing the current economic situation in a manner that will ensure full coordination and integration with regard to financial and monetary policies. Abdallah briefed Madbouly about the results of exempting production and operation inputs from the letters of credit (LCs) decision. (Al Mal)
- IMF not imposing measures that impact Egyptians.
Egypt’s negotiations with the International Monetary Fund (IMF) are ongoing and the IMF is not forcing the government to take any measures that could affect Egyptian citizens. On the contrary, the IMF welcomed the exceptional social protection package announced by the Egyptian government. Talks with the IMF are basically aimed at stabilizing the Egyptian economy. Madbouly announced that the exceptional social protection package will be executed in early September. On August 22nd, the Prime Minister stated that Egypt was in the final stage of its negotiations with the IMF for a new financing package. (Arab Finance)
- Application for 5th phase of immediate cash payment initiative to begin August 28th.
Egyptian Minister of Finance Mohamed Maait announced that receiving applications from exporters for the fifth phase of the immediate cash payment initiative will start on Sunday, August 28th, for three weeks until September 15th. Two dates were set for disbursing the receivables of beneficiaries who meet the requirements; October 1st and December 1st, Maait added.
- The ministry will allocate 10 billion EGP to launch the fifth phase of the immediate cash payment initiative to support exporters.
This move will help to accelerate the process of supporting exporting companies and provide them with enough cash to continue production, as well as to expand the base of exports and reinforce the competitiveness of Egyptian products in regional and global markets, Maait noted. For his part, Vice Minister of Finance for Fiscal Policies and Institutional Reform Ahmed Kouchouk said that the Export Development Fund has disbursed over 33 billion EGP to exporters since the launch of the export subsidy program in October 2019 until now. (Al Mal)
- Arab countries’ deposits at CBE hit 13 billion USD end-March.
Deposits of Arab countries at the Central Bank of Egypt (CBE) reached 13 billion USD at the end of March 2022. UAE and Saudi Arabia deposited $5 billion each, while Qatar placed 3 billion USD. Moreover, 2.8 billion USD were deposited at the CBE under the currency swap agreement with the People's Bank of China. The CBE’s data showed that short-term debt soared by around 12.7 million USD to 26.4 billion USD at the end of March. The ratio of short-term debt to net international reserves soared to 71.3% in March 2022 from 33.8% at the end of June 2021. It is worth noting that Egypt’s total debt service surged 105.76% year-on-year (YoY) during the third quarter (Q3) of the fiscal year (FY) 2021/2022, recording 6.292 billion USD. (Asharq Business)
- The Madbouly government is currently holding consultations with representatives from the wood industry on its privatization strategy.
The government is holding workshops and consultations with stakeholders from different industries every Sunday, Tuesday, and Thursday on its privatization plans. It is noteworthy that Hotels in Egypt’s Hurghada see 93% occupancy. The occupancy rate of hotels at Egypt’s Hurghada reached around 93%, while Sharm El-Sheikh’s hotels saw an occupancy of over 73%. The recent figures reflect a positive turn in the market compared to the same period a year earlier when hotel occupancy rates ranged between 75% and 80% in Hurghada and between 35% and 40% in Sharm El-Sheikh. (Asharq Business)
- Egypt’s local rice sufficient throughout 2022.
Egypt’s local rice production can meet domestic needs throughout the year. As of September 1st, the maximum price of bulk rice will decrease to 12 EGP per kilo from 14 EGP in the local market. The maximum price of packaged rice per kilo will not exceed 15 EGP next month. On August 22nd, Minister of Supply and Internal Trade Ali Moselhi stated that the strategic reserve of wheat is sufficient for 7 months. (Arab Finance)
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