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June 24, 2025: Valu hits the market

Valu closes up 850%+ in EGX debut

Valu made a headline-grabbing entrance to the EGX yesterday, with its shares surging 852.38% on their first day of trading. The stock closed at EGP 7.40, up from a reference price of EGP 0.777.

Remember:

Instead of a traditional IPO, Valu went public through an in-kind dividend: its parent company, EFG Holding, distributed roughly 20.5% of Valu’s shares to existing EFG shareholders. That approach valued Valu at EGP 15.6 bn unlocking approximately EGP 3.2 bn for investors, with EFG committing EGP 335 mn to fund the move.

“Valu’s listing on the Egyptian Exchange is a proud and defining milestone for EFG Holding. It reflects the culmination of years of strategic investment, innovation, and unwavering belief in the power of financial technology to transform lives,” EFG Holding Group CEO Karim Awad said.

Amazon exercises conversion option:

Adding to the buzz of the listing, Amazon acquired a 3.95% direct stake in Valu, buying shares at EGP 6.041 each. This builds on a 2022 deal where Amazon invested USD 10 mn in EFG Holding’s GDRs with an option to convert into Valu equity upon a liquidity event.

An expansion in the offing:

Valu plans to enter the Jordanian market after it receives final approval from the country’s Central Bank, CEO Walid Hassouna said in an interview with Al Arabiya Business. The company will offer financing services to individuals and SMEs through existing local partnerships and operational infrastructure.

Hassouna said the expansion will help drive growth next year.

Remittances continue upward trajectory in April

Remittances from Egyptians working abroad rose 39% year-on-year in April 2025 to reach USD 3 bn, up from USD 2.2 bn in the same month last year, according to central bank data. This marks the 14th consecutive month of annual growth.

In the first ten months of the current fiscal year (July 2024 – April 2025), remittances climbed 77.1% YoY to USD 29.4 bn, compared to USD 16.6 bn in the same period of FY 2023/2024.

Between January and April alone, inflows rose 72.3% YoY to USD 12.4 bn, up from USD 7.2 bn a year earlier.

Refresher:

Remittances are a key pillar of the government’s external financing strategy. The cabinet is aiming for inflows to rise 10% annually to eventually reach USD 53 bn by 2030.

What else is clapping?

GB Corp’s Auto division has introduced the first locally assembled model of Chinese auto brand Changan in the Egyptian market, marking a milestone for the company’s local manufacturing operations.

The company said it has invested EGP 4 bn in its new factory in Sadat City as part of its broader strategy to expand local production.

It’s worth noting that the firm reported a net profit of EGP 626.5 mn in 1Q 2025, almost unchanged from the same period last year, according to its latest financial statement.

Despite flat bottom-line growth, GB Corp reported an 86.1% y-o-y surge in consolidated revenues to EGP 16.76 bn, supported by strong performances in its Auto and Capital segments.