The board of directors of EGYTRANS decided to establish a new company under the name of Egytrans for Logistics Solutions in the Suez Canal Economic Zone

Newsletter

18 Oct 2021

For our top hot companies talks today, the board of directors of Egyptian Transport and Commercial Services Co (EGYTRANS) decided to establish a new company under the name of Egytrans for Logistics Solutions in the Suez Canal Economic Zone (SCZone) to handle storage and logistics activities for imported used cars. The new firm, which will import used vehicles to be modified for persons with disabilities, will have an authorized capital of 1 million USD and issued capital of 200,000 USD distributed over 20,000 shares at a nominal value of 10 USD apiece.

In addition, the board also decided not to move forward with the offer submitted by H.A. Utilities Holding BV, owned by Hassan Allam Holding and Tanmiya Energy, for business integration. No deal over a fair price has been reached, the company noted.
A. Utilities Holding BV estimated the stock of Egytrans at a FV of 12-13 EGP per share for a total market cap of 375 million EGP to 405 million EGP, while the Dutch company’s FV has been estimated at 680 million EGP to 800 million EGP, based on a relative value of 1.63 times to 1.9 times in favor of the Dutch company. (Source: EGX)
Equally important, for our startups talks, first, Sympl, a new startup founded by former co-founders of valU Mohamed Elfeky and Yasmine Henna and ex-Capiter Karim Tawfik, plans to cut pre-registration, vetting, and underwriting through on-spot deferred payments plans.
The startup seeks to carry out its plans by offering short-term interest-free repayment plans for a market of over 40 million bankcard holders. This will provide the “under-served segments” in Egypt with limited access to easy payment terms through consumer finance companie. The company is backed by an undisclosed investment sum from Middle Eastern venture capital firm A15. (Source: Bloomberg)
Second, Efreshli, an Egypt-based online interior design startup company, has raised a $550,000 seed round.
The seed round was led by angel investor Tarek Sakr and property developer Marakez, El Gabaly noted. The startup company will use this funding to finance its geographical expansion and develop its tech infrastructure. Efreshli targets regional expansion and plans for its launch in the UAE next year, she remarked. (Source: Enterprise)
Moreover, the board of directors of Palm Hills Developments (PHD) approved a securitisation issuance worth 1.1 billion EGP.
The board has authorised the Chairman individually or the two board members Ali Thabet Farghaly and Amr Hassan Mostafa, collectively, to sign all the contracts and agreements required for this issuance which will be conducted by Tharwa Securitization. In the first half (H1) of 2021, the property developer reported net profits of 495.51 million EGP, up from 282.04 million EGP in H1-20, including minority shareholders' rights. (Source: Arab Finance).
Furthermore, Eastern Tobacco Company - Eastern Company topped the list of the most expensive brands in the tobacco industry in Africa during 2021. The value of the brand, for the Egyptian tobacco industry, jumped by 34.5% during 2021, to record 393 million USD.
Eastern Tobacco Company is considered the monopoly of the tobacco industry in Egypt and the oldest, and it produced about 70 billion cigarettes during the last fiscal year. Eastern Tobacco ranks third in terms of market capitalization of companies listed on the Egyptian Stock Exchange with a value of 1.7 billion USD, after Commercial International Bank and Fawry Payment. (Source: According to a recent report issued by the global “Brand Finance” organization specialized in marketing research & EGX.)
And for our EGX talks, first, Amer Group Holding, on Sunday, buys 1.3 million treasury shares in the EGX as part of a plan to buy a large amount in three months. On October 10, Amer Group Holding approved a comprehensive plan to purchase a quantity of treasury shares within 10% of the total shares.
The group said in a disclosure sent to the stock exchange at the time, that purchases of this quantity will take place within three months, starting from October 12 and ending on January 11 next. It is worth mentioning that Amer Group's profits doubled five times to 176 million EGP in six months during the first half that ended last June 2021 compared to a net profit of 27.6 million EGP during the comparable period last year. With this in mind, the company’s revenues recorded a huge jump to more than 1 billion EGP, during the mentioned period, compared to revenues of 303 million EGP, during the comparable period last year. (Source: EGX)
Second, the shares of the public offering of E-finance for financial and digital investments were covered about 61 times, with the subscription closed at the end of yesterday's session. The total number of requests reached 1.6 billion shares, indicating that the coverage rate is the highest in the history of the EGX as a government company.
It is noteworthy that the public offering of the shares of E-Finance started from October 10 to the end of October 17, with a maximum price of 13.98 EGP per share, and the size of the public offering segment is about 25.77 million shares, representing 1.61% of the company’s total issued shares. The sources indicated that the number of participants in the private placement may reach 10 foreign funds, revealing that some of them obtain influential shares of E-Finance shares, with a minimum of 3%, and a maximum of 6%. (Source: EGX & Al-Mal)
Turning to our macro talks, we need to mention that Egypt’s balance of payment has recorded a surplus of 1.9 billion USD in fiscal year (FY) 2020/2021, versus a deficit of 8.6 billion USD in FY 2019/2020. The overall surplus improved despite the increase in the current account deficit to 18.4 billion USD in FY 2020/2021, against 11.2 billion USD in FY 2019/2020. This increase was mainly driven by lower tourism revenues amid the COVID-19 pandemic.
The Ministry of Finance aims to sustain the downward path of debt rates to GDP by adopting the implementation of a public debt management strategy based on diversifying sources of financing and issuing “dollar” bonds, “Eurobond” bonds, “green” bonds, and “sustainable development” bonds. It focuses on diversifying sources of funding and reducing its costs. (Source: According to a press release issued by the Central Bank of Egypt (CBE)
And for our global macro watch, Americans stepped up their spending in September, a sign of resilient demand and rising inflation as consumers head into the holiday shopping season. Sales at retail stores, restaurants and online sellers rose a seasonally adjusted 0.7% in September from the previous month. The rise in sales reflects persistently strong demand and higher consumer prices.
And finally, Egypt's Universal Health Insurance Authority (UHIA) has launched e-Health, a new company for the development, management, and operation of health technology and digital solutions. e-Health, a sister company of e-finance, will provide comprehensive and integrated services starting from the management of day-to-day operations of insurance and health technology systems to technical support services and consultations.
Also, Speed Medical Company (SPMD) has signed a contract with the entity owning the rights of Covid-19 Drive Thru Testing Units at a number of universities to directly manage and operate these units. This will positively impact Speed Medical’s financial statements and the revenue volume achieved in the standalone budget for the fourth quarter (Q4) of 2021 and for a 24-month period. (Source: Arab Finance)