Subscribe to Egypt Claps
We have a short issue to end the long work week with some important stock market updates, including on ACTF’s long awaited debut on the EGX yesterday.
A successful debut for Act Financial
The Clap:
Act Financial IPO’d on the EGX yesterday, marking the first public listing the market has seen in over a year.
Details:
The debut saw the company’s share value rise more than 29.6% from EGP 2.90 at the start of the day to EGP 3.76 apiece by market’s close. The company’s market cap stands at EGP 4.23 billion.
Remember:
Act Financial’s pre-IPO retail offering was oversubscribed 54.76 times last week, while subscription for institutional investors was 20.2x covered. The company reached its target of raising EGP 1.04 billion from the offerings.
Business model:
The firm’s strategy centers on generating value by investing in Egyptian businesses, channeling their investments toward boosting their portfolio firms’ business operations, gaining market dominance, and sharpening corporate management.
After reaching their targets, the company’s strategy is to offload their stake in its portfolio companies after an average two-year holding period.
Noteworthy investments for Act Financial:
A minority stake in Beltone Financial from 2015 to 2019.
A minority stake in CI Capital from 2019 to 2020.
A minority stake in “Heliopolis Housing” from 2020-2021.
More than a 5% (around 10%) stake in RAMEDA from 2020 to 2023.
Post-IPO:
The company intends to channel the EGP 1 billion from its IPO proceeds to invest in three companies listed on the EGX this year. Additionally, it plans to increase its investments to approximately EGP 6 billion this year, its CEO Basem Azab told Asharq Business yesterday.
Bourse completes its semi-annual periodic review of market indices + new additions to EGX30
The Clap:
The Egyptian Stock Exchange completed its semi-annual periodic review of market indices, with implementation set for August 1, 2024. As part of the periodic review, five companies were added to the main EGX30 index (which comprises the most highly capitalized and liquid stocks traded on the Egyptian Exchange).
And:
The EGX70 index also saw the replacement of 16 companies, 4 of which joined the EGX30 index. The EGX100 index saw the removal and addition of 12 companies, while the EGX33 (Sharia index ) saw only two companies replaced.
New faces:
New entrants to the EGX30 include Credit Agricole, Faisal Islamic Bank, Emaar Misr, B Investments, and Cleopatra Hospitals Group.
Departees:
Qalaa Holdings, Orascom Development, Delta Sugar, Ibn Sina Pharma,, Delta Sugar, and Eipico will be transferred to the EGX70 index from 1 August.
Changes to Egypt’s first Shariah-compliant index:
Rameda Pharma and the Egyptian Financial and Industrial Company are the latest additions to the EGX33, replacing Fawry and Mopco.
This comes as the index’s Supervisory Committee adjusted the criteria for sharia compliance by lowering the acceptable threshold for non-compliant incidental revenue to 5, down from the previous 10%.
The Clap:
Catalyst Partners submitted an application to establish a special purpose acquisition company (SPAC) in a bid to acquire three companies in the non-banking financial activities and financial technology sectors, Al Borsa writes, citing sources familiar with the matter, to sources who spoke to Al Borsa. This could be Egypt’s first SPAC listing ( which we got wind of recently).
Refresher:
According to new regulation passed earlier this week, SPACs now have a two-year timeframe from their listing date to finalize an acquisition, which may involve acquiring full ownership or a controlling interest in a given company. The acquisition target must be presented to shareholders within six months of IPOing, with shareholders who object being given a month to withdraw.
The details:
The company – to be dubbed Catalyst Partners Middle East — will include the targeted firms in its corporate strategy immediately after obtaining the SPAC establishment license, and the acquisition process is expected to be implemented gradually, one after the other.
In line with new FRA requirements, Catalyst has reportedly secured initial pledges from local and foreign investors for a capital increase in Catalyst Partners Middle East from EGP 10 million upon launch. to EGP 100 million a month after obtaining the license.
The Clap:
Zahraa Maadi Investment and Development Company has agreed to award a joint development project – residential/ commercial – on an area spanning 41.9 feddans in New Heliopolis City to Madinet Masr. The targeted sales and planned investments for the project have not been disclosed yet.
The company says the agreement’s draft will be presented to the board of directors of both companies for review and signing.
Remember, Madinet Masr has been making moves:
Just this week, the developer launched its Esse Residence project in Sarai, New Cairo with investments estimated at EGP 10 billion. This came after the company announced a partnership last month with Heliopolis For Housing & Development for construction of a residential project spanning 491 feddans in New Heliopolis in eastern Cairo. The project is expected to add EGP 194.67 billion in revenues over 12 years, with Madinet Masr holding a 63.5% stake in it.
And had a great Q1:
The company recorded EGP 1.17 billion in net profits during Q1 2024, compared to a net income of EGP 304.36 million during the same period last year.
What else is clapping?
Memphis Pharmaceuticals saw its net income rise 115% YoY to EGP 194.6 million in the period between July 2023 and June 2024. Its revenues are also up 35.3% YoY to EGP 898.9 million.
Zeot Extracted Oils saw its bottomline shrink 95.3% YoY to EGP 1.17 million in the period between July 2023 and June 2024, while its revenues saw a 1.38% YoY uptick to EGP 3.67 billion.
Latest CLAPS
