Subscribe to Egypt Claps
We have a meaty read for you this morning with news of a mega residential project jointly carried out by Madinet Masr and Heliopolis Housing, news of IPO updates from ACUD and Act Financial, and more.
The Clap:
EGX-listed real estate developers Madinet Masr and Heliopolis For Housing & Development (HHD) are partnering up on a new residential project spanning 490 feddans in New Heliopolis in eastern Cairo.
What:
The project is expected to add USD 4 billion (c. EGP 194.4 billion) in revenues over nine years, Asharq Business reports, citing sources familiar with the matter.
The details:
Heliopolis’s guaranteed minimum revenues from the project will total EGP 53.18 billion over 9 years. Madinet Masr will have to cough up EGP 1.1 billion in a one shot cash injection upon inking the official agreement, Asharq says.
The Clap:
The Administrative Capital for Urban Development (ACUD) will IPO on the EGX in 2025, the company’s chairman Khaled Abbas told Al Borsa.
Remember:
The firm was initially targeting a listing in 2Q 2024, and earlier this week ]revealed it would delay its foreign advisor selection process for the listing until 4Q 2024..
Why this matters:
ACUD wants to rake in at least EGP 150 billion from the IPO of between 5-10% of its shares on the EGX. If the plan moves forward, the listing could be the country’s largest ever IPO.
In other IPO news:
Investment management firm Act Financial — which last month secured regulatory approval to IPO — will price its shares at EGP 3.65 when it goes public on the EGX between the end of May and beginning of June. The company wants to raise EGP 1.3 billion from a listing of 30% of its shares.
The Clap:
Seven international and Egyptian investors have submitted bids to acquire a minority share of government-owned fuel retailer Wataniya, signaling the privatization deal is expected to wrap soon.
Remember:
As of last year, the agreement was expected to see Wataniya sell off 174 of the 300 fuel stations it operates. The military company would retain 126 stations deemed strategic.
Offers have been on the table for a while:
Three final offers for a 30% stake in Wataniya were submitted as of February, though Taqa Arabia is the only player to publicly signal interest in the state-owned oil company.
What else is clapping?
ODIN Investments reported profitability in 1Q 2024, raking in EGP 118.3 million in net income compared to losses of EGP 7.7 million in the same period last year.
Banque Misr has extended Telecom Egypt a USD 200 million (EGP 9.4 billion) loan aimed at helping the telecommunications company refinance its existing short-term facilities.
Egypt has downgraded its growth outlook for the current fiscal year ending in June to between 2.8-2.9% from initial projections of expansion at a 3% clip.
Latest CLAPS
