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Gov’t moves to exempt IPO proceeds from taxes
- What: Enterprise reports that the government is preparing a package of incentives — the biggest of which is a full exemption of IPO proceeds from taxes.
Other steps include wider tax breaks for investment funds and setting out clear rules for how stamp duty will be collected from buyers, sellers, residents, and non-residents. - So What: The goal is to pump more liquidity into the EGX ahead of a new wave of privatizations — including five army-owned firms: Wataniya, Chill Out, Silo Foods, Safi, and the National Roads Company.
- Now What: A committee including the Finance Ministry, the Investment Ministry, FRA, and EGX is expected to finalize the package before the end of the month. Once ready, the EGX could kick off IPOs as early as September.
ADIB looks to raise capital to EGP 15 bn
- What: The FRA has approved Abu Dhabi Islamic Bank-Egypt (ADIB) to publish its disclosure report on raising its paid-in capital from EGP 12 bn to EGP 15 bn by issuing 300 mn new shares.
- So What: The move will strengthen “ADIB’s” capital base, helping it expand financing and investments, while boosting its resilience against potential risks.
- Now What: The increase — pending EGM approval — will be covered through a cash subscription for existing shareholders, with preemptive rights tradable separately from the main stock.
What else is clapping?
- Edita moves up dividend payout
Edita (EFID) has brought forward the payout date for the second installment of its 2024 cash dividend (EGP 0.571488851/share) to 10 September instead of 20 November.
The first installment of the same amount was distributed on 30 April.
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