SOLID Capital for Financial Advisory has set the fair value for International Company for Medical Industries’ (ICMI) stock at EGP 5.67

Newsletter

04 Oct 2021

For our top talks today, first, we need to mention that SOLID Capital for Financial Advisory has set the fair value (FV) for International Company for Medical Industries’ (ICMI) stock at EGP 5.67, according to the FV study report filed to the Egyptian Exchange (EGX). The total evaluation of the company has been estimated at 137.245 million EGP. The rights issue subscription will be opened to shareholders for raising ICMI’s issued capital by 48.379 million EGP through the issuance of 48.379 million shares at a par value of 1 EGP per share, with issuance fees of 2.5 EGP per share. The company’s board of directors previously agreed on increasing the issued capital to 72.569 million EGP from 24.189 million EGP. (Source: Prime Time Zone)

Second, Cotton prices are going crazy! Flying at historical levels and the kantar jumps to 5,260 EGP.
The prices of Egyptian cotton jumped to historical levels during two auctions held in tribal and offshore areas last Saturday, after the “Giza 94 class” quintal in Lower Egypt reached 5,260 EGP, up 235 EGP from its price in the highest auction recorded last Thursday, which amounted to 5,025 EGP. It is worthy to highlight that the amount of increase in the price of cotton is 3,160 EGP so far for the Lower Egypt varieties, after recording 5,260 EGP, compared to 2,100 EGP in last year’s crop. The volume of production of the Egyptian cotton crop is 1.6 million kantars, of which 1.5 million are coastal regions and 100,000 are tribal region. (Source: Al-Mal)
Equally important, the Ministry of Tourism and Antiquities announced that the development of the Luxor Marina for floating hotels has been completed,
explaining that the Engineering Authority of the Armed Forces began implementing the Luxor Marina development project in November 2019, which was completed and delivered last Friday. It is noteworthy that the Luxor Marina for floating hotels is now ready to receive floating hotels, as it is divided into two parts, the first with a length of 450 meters to accommodate 5 berths for the mooring of floating hotels, and the second section with a length of 730 meters to accommodate 6 berths for the berthing of floating hotels.
Furthermore, Egypt has approved to obtain funding worth 100 million EUR from the French Development Agency (AFD) to establish and manage a wholesale market in Borg El Arab, Minister of Supply Ali Al-Muselhi revealed in a statement.
Moreover, nearly 14 wholesale markets are set to be established across the governorates of Egypt following the completion of Borg El Arab’s market, in order to achieve food security. A joint Egyptian-French company will be set up to manage the project in early 2022, he highlighted, adding that the AFD has chosen the advisor which will conduct the feasibility study of the project. The AFD is keen to complete all the procedures regarding the project to begin actual operation within 18 to 24 months. (Source: Daily News Egypt)
Also, Anchorage Investments plans to develop an industrial complex at Egypt’s Suez Canal Economic Zone (SCZone) at a value of 2.5 billion USD.
Under this project, various derivatives and petrochemical products, including olefin and polyolefin, will be produced, which is expected to enhance the economic value of natural gas derivatives. This project is expected to contribute to the country’s gross domestic product (GDP) growth and to attract foreign direct investment (FDI), as well as to support petrochemical projects. Moreover, the company seeks gradual expansion in producing other integrative products. (Source: Press release by Anchorage Investments)
In addition, the Minister of Trade and Industry, Nevine Gamea, announced that the Export Development Fund issued 338 export certificates under the third phase of the immediate disbursement of export subsidies initiative.
A total of 456 companies received total subsidies worth EGP 874.8 million or a net value of EGP 785.5 million after deducting due tax and gas bill arrears. The number of companies that have applied to join the export subsidy payment initiative has reached 1,634. (Source: Mubasher)
And for our COVID-19 vaccine watch, Egypt has received 1.612 million doses of Pfizer COVID-19 vaccine at the Cairo Airport on Thursday, Minister of Health Hala Zayed announced in a statement.
The vaccines are provided to Egypt by the US government as per the COVAX initiative in collaboration with the Global Alliance for Vaccines and Immunization (GAVI).
Moving to our M&As and companies talks, first, Porto Group Holding aims to expand in the Arab region and inject more than 1 billion EGP worth of investments over the coming three years primarily by acquiring and developing land plots.
The construction works for Porto Aghadir in Morocco is expected to begin in 2022. About 80% of Porto Group's total projects are located in Egypt. In the first half of 2021, the company turned to consolidated net profits of 71.79 million EGP, versus net losses of 24.7 million EGP in the year-ago period, including minority shareholders' rights. (Source: Mubasher)
Second, B Investments Holding (BINV) is getting ready to offer its 20%-owned subsidiary Ebtikar on the EGX by the fourth quarter (Q4) of 2021.
Ebtikar operates the e-payment solutions companies Bee and Masary, which provide nearly 800 services and have over 110,000 points of sale (PoS). It is worth mentioning that Vodafone Egypt is projected to acquire a 20% stake in Ebtikar before the initial public offering (IPO) takes place. Prime has set the share price of B Investments at 17.9 EGP per share, with a stock weight upgrade recommendation.
Turning to our EGX talks, first, e-finance for Digital and Financial Investments (e-finance Investment Group) has set the indicative price for its initial public offering (IPO) of 257.77 million ordinary shares on the EGX at a range between 12.5 EGP and 13.98 EGP per share.
The offering comprises a sell-down of 80 million secondary shares and a capital increase of 177.777 million primary shares, both account for 14.5% of the group’s share capital. Moreover, the offering will include a placement to specific institutional investors in Egypt and abroad, and an offering to retail investors in Egypt. (Source: EGX)
Second, Alexandria Company for Pharmaceuticals and Chemical Industries (Alex Pharma) (AXPH) announced that its ordinary general meeting (OGM) has approved to distribute cash dividends worth 10 EGP per share to shareholders for fiscal year (FY) 2020/2021.
The company previously announced that the board of directors proposed cash dividends distribution of EGP 6 per share for FY 2020/2021. Moreover, The Arab Drug Company (ADCI) announced that its OGM has approved the payment of cash dividend worth 5 EGP per share to shareholders for FY 2020/2021. It is worth noting that the company posted a net profit of 102.063 million EGP in FY 2020/2021, compared to profit of 92.800 million EGP in FY 2019/2020. (Source: EGX)
And finally, Misr Chemical Industries Company (MICH) announced that its board of directors has approved the financial statements and business reports for the period starting July 1st until August 31, 2021.
The financial statements showed that the company achieved a net profit of 33.21 million EGP in the July-August period of 2021, compared to a profit of 28.014 million EGP in the year-ago period. The company’s net profit came higher than the targeted profit for the period of 17.967 million EGP. (Source: EGX)