The initial public offering of Emerald Development and Projects Management on NileX has been oversubscribed by almost 26.34x
For our top Talks today, the initial public offering (IPO) of Emerald Development and Projects Management (EMDE) on NileX has been oversubscribed by almost 26.34x. Total purchase orders were placed on 414.817 million shares of Emerald Development. Emerald Development seeks to float a 10.95% stake or 45 million shares on the small- and medium-sized enterprises (SMEs) market at a share price of EGP 1.28. It is worth noting that the company’s total shares amount to 425 million shares. (Source: EGX)
- Second, a consortium, including Orascom Construction PLC and Toyota Tsusho Corporation, has signed a 20-year agreement with the Egyptian Electricity Transmission Company (EETC) to develop and operate a 500 MW wind farm in Ras Ghareb in Egypt.
The consortium also includes Eurus Energy Holdings Corporation from Japan and ENGIE from France, according to a press release on Thursday. To implement the construction of the wind farm, Orascom Construction will hold a 25% stake in the project. This agreement came following the consortium's success in developing 262.5 MW Ras Ghareb Wind Farm, Egypt’s first renewable energy Independent Power Producer (IPP) project of its kind and size. (Source: Arab Finance).
- Equally important, Swvl revealed it has generated gross revenue of 16 million USD in the third quarter (Q3) of 2021, surging by 264% from 4.4 million USD in Q3-2020.
The company’s gross revenue grew by 1.8x in Q3-2021 as compared to pre-COVID level. The number of Swvl’s active users soared by 207% in Q3 2021, reaching 507,700 users from 166,000 users in Q3-2020. Moreover, the company targets achieving a gross revenue of $155 million in 2022, up by 10% from its previous guidance of %141 million. (Source: According to the company’s Q3-2021 earnings report).
- Also, the British independent power producer Globeleq has acquired ARC for Renewable Energy (ARC) 66-MWp solar PV plant at the Benban Solar Park near Aswan, Egypt.
The project was developed by the SECI Energia, Enerray, and Desert Technologies consortium as part of the second round of the Egyptian government's feed-in-tariff (FiT) program. It was financed by the International Finance Corporation (IFC), Globeleq's shareholder CDC Group (CDC), the Asian Infrastructure Investment Bank, Europe Arab Bank, and Finance in Motion. Globeleq will provide ARC with asset management services and supervise the project's operation and maintenance contractor. (Source: Mubasher)
- Moreover, Six of October Development and Investment (SODIC) signed a long-term syndicated facility worth 1.57 billion EGP with Arab African International Bank (AAIB) and Banque Misr (BM) to finance the company’s West Cairo development SODIC West.
The loan will refinance 1.1 billion EGP outstanding on the 1.3 billion EGP medium-term facility signed in April 2017 and partially finance the remaining capital expenditure (CAPEX) on the company's investment portfolio of leasable assets and real estate development projects in SODIC West. The company's outstanding debt reached 2.4 billion EGP as of 30 June 2021. (Source: EGX)
- In addition, Genoa Development has launched its first project in the New Administrative Capital named Seventy-Seven Business Complex in the Downtown area with an investment of 456 million EGP.
The project, which spans an area of 2,500 square metres (sqm), is expected to generate sales of 400 million EGP. Delivery of the project is projected to begin after four years. The mixed-use project, which spread over two phases, features 204 units of commercial, administrative, and medical units with sizes between 13 sqm to 85 sqm. The designs of the project were assigned to Consulting Engineering Office, Mohamed Hafez. (Source: Mubasher)
- By the same token, Egypt Aluminum (Egyptalum) (EGAL) has raised supplying prices to factories and retailers by 4,000 EGP to 5,500 EGP in October 2021.
The prices now range between 55,000 EGP and 66,000 EGP per ton, excluding taxes. The increase in supplying prices was driven by higher global prices which rose by an average of 250 USD per ton, recording 2,855 USD, instead of 2,605 USD. It is worth noting that Egypt Aluminum turned to profitability during fiscal year (FY) 2020/2021, with a net profit of 28.27 million EGP, versus net losses of 1.67 billion EGP in FY 2019/2020. (Source: Al-Mal)
- Moving to Egypt green economy talks, the Sovereign Fund of Egypt (TSFE) signed an agreement with Norway's Scatec and Fertiglobe plc, an ammonia producer jointly owned by the Netherlands-based OCI and Abu Dhabi National Oil Company (ADNOC),
to develop a 50-100 megawatt (MW) green hydrogen facility as feedstock for green ammonia production. The facility, which will be built near EBIC in Ain Sokhna, will be majority-owned by Scatec, while the remaining interest will be distributed between TSFE and Fertiglobe. It is expected to be operational by 2024. (Source: Al-Mal)
- Furthermore, Egypt is set to join JP Morgan’s GBI index for emerging markets as of the end of January 2022.
According to Mohamed Maait, the Egyptian Minister of Finance, the inclusion could inject a total of 1 billion USD in new investments into government debt instruments, including treasury bills and bonds. About 90% of foreign investors surveyed by JP Morgan supported Egypt's inclusion in the index to be one of two countries in the MENA region included in the index. Egypt is expected to join the index with 14 bonds with a total value of 24 billion USD and an estimated weight of 1.85%. (Source: Ahram Online)
- And finally, for our EGX talks, first, a strategic investor has submitted a request to the bookrunners of e-finance for Digital and Financial Investments’ (EFIH) initial public offering (IPO) to acquire up to 10% of the total shares offered for sale.
Demand for the public offering notably increase as a result of setting the final price of e-finance’s stock at 13.98 EGP. The public offering has been oversubscribed by 4.54x within four days from opening the offering for subscriptions. The offering is set to be closed on October 17th, 2021, with trading on the stock set to commence on the following day’s trading session. Last Monday, the Financial Regulatory Authority (FRA) approved raising the number of e-finance’s offered shares for sale to 417.77 million, representing 26.1% of the company’s total shares. (Source: Al Borsa Newspaper)
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