The EGX decided to stop general trading for half an hour shortly before closing, due to the sharp decline of the “EGX100” index, and it exceeded the 5% ceiling available in one session
For our top EGX & companies talks today, it is worth mentioning first that the EGX decided to stop general trading for half an hour shortly before closing, due to the sharp decline of the “EGX100” index, and it exceeded the 5% ceiling available in one session. The main index on the Egyptian Stock Exchange “EGX30” fell by 0.72% at the level of 11,195 points, as well as “EGX70” for medium stocks by 6.7% at 2481 points. The red color dominated most of the traded shares, as 21 shares rose out of a total of 198 traded, while 137 fell, and 40 remained unchanged. (Source: Al-Mal)
- Second, Ikmi intends to pump investments worth 48 million EGP during the coming period, to be directed to complete the company's expansion plans.
This value is managed from the proceeds of the capital increase that the company is conducting during the current period, provided that it is directed to raise its ownership percentage in the two companies, “New Alpha” and “United Group for Medical Supplies - Alfa Medical”, which are owned by it at the present time, by 5%. and 48%, respectively, of making a full acquisition. Ikmi recently obtained the approval of the Financial Supervisory Authority to continue with the procedures for increasing its capital from 24.1 million EGP to 72.5 million EGP, an increase of 48.3 million EGP distributed over 48.3 shares with a nominal value of 1 EGP per share, to be funded through subscription. (Source: Al-Mal)
- Also, the Egyptian Financial Group Hermes Holding (EFG Hermes) (HRHO) is currently working on about five initial public offerings (IPOs).
These IPOs include Macro Group Pharmaceutical, Abu Auf, and Ebtikar, in addition to, two offering for the private sector. Three companies are expected to be offered on the EGX in the first half (H1) of 2022 if liquidity ratios continued improvement after e-finance’s IPO. The other two offerings could be implemented in H2-2022 as they provide a different business model from its peers in the Egyptian market. Moreover, the company is working on three new offerings on the Saudi Stock Market (Tadawul) that are likely to be completed by the end of 2021 or in early 2022. Additionally, EFG Hermes is working on two new offerings on the Abu Dhabi Securities Exchange (ADX) that are expected to be closed by the beginning of 2022. (Source: Al Borsa Newspaper)
- In addition, Ezz Steel (ESRS) announced it has achieved unprecedented exports that exceeded 1 billion USD in the first nine months of 2021.
The value of the company’s exports stood at 1.013 billion USD during the period starting January 1st until September 30th, 2021. The company’s exports valued at 597 million USD in the first half (H1) of 2021. In the third quarter (Q3) of 2021, exports valued at 416 million USD. It is worth noting that Ezz Steel reported a consolidated net profit of 2.39 billion EGP for the first half (H1) of 2021, versus a net loss of 2.77 billion EGP in the same period of 2020. (Source: EGX)
- No to mention, Mountain View’s contract sales soared 220% to 14 billion EGP during the first nine months of 2021, compared to 6.4 billion EGP in the same period of 2020.
The exceptional sales results locate Mountain View’s leading position in the market despite yet another challenging year from the COVID-19 pandemic. The skyrocketing sales were achieved through the company’s diverse portfolio of projects, with iCity New Cairo project topping the list with total sales amounting to 7 billion EGP in its different phases. Lagoon Park, Mountain Park and its exclusive & innovative iVilla concept, followed by Mountain View Ras El Hekma project, which acquired sales worth 4 billion EGP in Skala phase, becoming one of the largest North Coast projects in terms of sales in 2021. (Source: Arab Finance)
- By the same token, the alliance of "Act Financial Consulting", "Concrete Plus" and "Hassan Allam Real Estate", is close to rejecting the purchase offer submitted by the UAE "Aldar Properties", to acquire "SODIC", which amounts to 20 pounds.
Its fair price is no less than 24 EGP. It is noteworthy that an offer was submitted by a consortium consisting of Aldar Ventures International Holdings and Gamma Forge, which aims to purchase 320.5 million shares, representing a maximum of 90% of SODIC shares, or a minimum of 51% at a cash price of 20 EGP. (Source: Al-Mal)
- In the same fashion, the board of directors of Orascom Construction PLC (ORAS) has approved to evaluate, through its subsidiaries, the potential acquisition of up to 100% of the capital of Orascom Trading Company, National Equipment Company, and Orascom Free Zone- Onsi Sawiris and Partners.
Moreover, the board approved to appoint HLB for Financial Consultancies on Securities as an independent financial advisor to conduct the fair value (FV) study on the three aforementioned companies. In addition, Orascom Construction’s board of directors approved to consider a potential acquisition of a leading equipment importation, distribution, and services company in Egypt. (Source: Al-Mal)
- Furthermore, Telecom Egypt signed a cooperation agreement with the global Nokia Corporation to establish Egypt’s first infrastructure to provide Internet of Things (IoT) services through Nokia's global network (WING).
The WING network will allow Telecom Egypt to provide IoT services to companies on a global scale, enabling them to benefit from the rapidly and effectively growing IoT market based on the Nokia model. The WING network will also enable Telecom Egypt to provide global IoT service at low local prices compared to the more expensive roaming rates. (Source: Arab Finance)
- As a matter of fact, British Willis Towers Watson plans to acquire two unnamed insurance brokerages operating in Egypt.
The step falls in line with the company’s regional expansion plan. The company will look to combine the portfolios of both those companies and fully acquire their licenses so long as this is within the framework of the Insurance Act. Both potential transactions are still under consideration, and Willis Towers did not give further details regarding the investment amount. It is worth noting that Egypt has around 91 firms that operate in insurance brokerage or offer secondary insurance services. (Source: Al Borsa News)
- Likewise, Cairo-based FMCG Logistics company ILLA has successfully secured a seven-figure investment round.
The company will use the fund to boost its growth in the market and diversify its offering to the FMCG value chain. The round was co-led by Watheeq Financial Services and Golden Palm Investments. The round saw participation from Loftyinc Capital Management, Kepple Africa Fund, Cubit Ventures, AUC Angels, Oqal Angel Network and FLat6Labs Cairo doubling down on its investment in ILLA for the third time. ILLA’s portfolio combines more than 65 clients including Coca-Cola, P&G, Danone, Nestle, Juhayna, and Pepsico. (Source: Arab Finance)
- And finally, for our macro watch, first, Egypt got a mention in the top-five African holiday destinations, according to the Financial Times’ list.
Egypt's tourism revenues were between 3.5 billion USD to 4 billion USD during the first half of 2021. The country received around 3.5 million tourists during the first six months of 2021. Numbers of tourists are expected to increase by 45% to 60% during the next period compared with last year. In May, Tourism Minister Khaled El Anany said that tourism revenues are expected to reach between 6 billion USD and 9 billion USD in 2021 due to the rise in arrivals from Eastern European and Gulf tourists. (Source: The Financial Times)
- Second, the Sovereign Fund of Egypt (TSFE) aims to double its assets under management (AUMs) to over 26 billion EGP by the end of 2022.
Noting that the fund's assets reached 13 billion EGP as of October 2021. The fund is preparing to award a leasehold contract for the Tahrir complex this month under a 49-year usufruct agreement in return for the renovation works, which should be completed within 24 months from the date of the contract. Additionally, the Suez Canal Economic Zone announced the launch of its first participation in the Egyptian pavilion at the Expo 2020 Dubai International, Thursday, October 28, as part of 17 events that the authority is preparing to launch over the next six months, the period of the exhibition, under the slogan “One destination and an integrated path”. (Source: Al-Mal)
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