Good morning, ladies and gents. Egypt’s biggest listed developer just signed its most ambitious agreement with the state yet, and the details that matter most are yet to come.
Talaat Moustafa Group signed four mixed-use projects with the government in Madinaty, Alexandria, Abu Qir, and the North Coast, valued at a combined EGP 11 tn. The filing doesn’t say what the state gets in return, and those terms will decide what the agreements are worth to both sides. Our big story has the breakdown.
Over in capital markets, a dozen companies have now graduated from the EGX’s SME board, and how they raise the capital to qualify says a lot about their growth prospects, analysts tell us. A rights issue brings in fresh money, while a bonus issue just shifts retained earnings into paid-in capital. More on that below.
In energy, the Oil Ministry is targeting 14 Mediterranean exploration wells with up to 12 tcf of potential gas this fiscal year, two government officials tell us, as a new seismic survey gets underway off Port Said.
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Aphrodite’s price tag
Cypriot gas is a step closer to reaching our grid: The Oil Ministry and Chevron initialed a fiscal agreement for developing Cyprus’ Aphrodite gas field and connecting it to Egyptian infrastructure, according to a ministry statement. Oil Minister Karim Badawi and Cypriot Energy Minister Michael Damianos witnessed the signing at the sidelines of the MOC 2026 conference in Alexandria. The plan is for Egypt to receive, process, and liquefy the gas, then send it to local and global markets depending on demand and the project’s economics, the ministry said, without disclosing terms.
The price of moving the gas is still up for debate, and Egypt has a stake on both sides. Chevron and its partners have proposed a transport charge of around USD 3/mmBtu for the Egyptian section of the export pipeline, about three times the roughly USD 1/mmBtu previously envisaged, Mees reports. Nicosia considers the charge excessive and has asked the partners to come back with a more competitive offer. The disagreement is complicating talks over a binding gas sales agreement with Egas.
Why Egypt sees both sides: The Egyptian section of the pipeline will belong to Aphrodite Midstream, which is jointly owned by the field partners and an entity appointed by the Egyptian government. A higher tariff would lift that company’s earnings, but it would also raise the cost of the gas Egas buys, according to Mees. At planned plateau sales of 700 mmcf / d, the proposed tariff would add about USD 500 mn a year in transport charges. Cyprus has no direct stake in the pipeline company and earns from the field through a production-sharing arrangement, so a higher tariff would eat into its revenues as well, though by less than that amount, Mees says.
The timeline has slipped too: The ministry was aiming for a final investment decision by September, with gas reaching Egypt by 2030. Field partner NewMed’s website now lists the investment decision in 2028 and first gas in 2031, Mees reports, and the partners’ contractual deadline for the decision is June 2027. The tariff, the sales agreement, and a cross-border dispute with Israel over part of the reservoir all remain open.
REMEMBER- Egas has already agreed to buy all of Aphrodite’s gas. It signed a term sheet with the field partners in April for the field’s entire output over 15 years, with up to 700 mmcf / d landing at Port Said for the first six years and pricing linked to Brent. Shell has since agreed to sell its 35% stake to Hungary’s MOL for up to USD 720 mn, a price that values the project at more than USD 2 bn. The transaction is due to close early next year.
WHAT’S NEXT- The fiscal agreement still needs the House’s approval. The April term sheet gave the House six months to sign off on the project’s fiscal framework.
A full house already
Two days in, and Banque du Caire’s (BdC) retail tranche is fully covered. EGX order screens show retail investors have put in orders for 241.3 mn shares by the close of yesterday’s session, covering the 228.75 mn-share public tranche 1.05x, Al Borsa reports. That’s up from 42% (97 mn shares) on day one. At the EGP 4.82-5.30 price range, the orders are worth about EGP 1.2-1.3 bn, by our math.
And there’s plenty of time for that to climb. The retail book has six sessions to go, including today’s, before it closes on 28 October, and retail orders tend to pile in at the end. Look at MNT-Halan, whose retail tranche went from about 13.5x covered the day before it closed to 43.6x last week. BdC’s retail buyers also have a safety net: a stabilization fund will keep a buy order at the offer price for the first 30 days of trading.
REFRESHER- Banque Misr is selling 4.575 bn existing shares in BdC, a 30% stake, in a fully secondary offering worth EGP 22.05-24.25 bn before any upsize, with all proceeds going to Banque Misr rather than BdC. That makes it the EGX’s biggest IPO in USD terms in at least five years. It’s also the state’s first IPO since United Bank in late 2024, and it comes as the government races to meet its USD 1.5 bn divestment target before its IMF program expires on 15 December, with close to USD 1 bn still to raise.
The institutional book filled on day one: The private placement, which accounts for 95% of the offering, was covered within hours of opening on Monday, with subscriptions closing Friday. Four international cornerstone investors, Helikon, Sustainable Capital, Redwheel, and Waha Investments, have committed to take just under two-thirds of it, depending on the final price.
Banque Misr can also take the offering up to 45% if demand warrants it, adding shares to the public tranche, the private tranche, or both, according to the prospectus. Any upsize has to be announced at least three days before retail subscriptions close, which puts the deadline at Sunday, 25 October.
A bigger AI bill
MNT-Halan’s spending on AI could overshoot the roughly USD 10 mn the fintech unicorn had initially estimated for 2027, co-founder and CTO Ahmed Mohsen told Al Borsa yesterday. The higher estimate reflects the company’s expanding use of AI across its operations, Mohsen said. The bulk of that spending will go toward leasing graphics processing units (rather than buying them) to supply the computing power the company’s AI tools run on, Mohsen said. He argued that wider AI use lets the company take on more business without a matching rise in its operational burden and that it speeds up decision-making. ICYMI- MNT-Halan’s shares closed up 6.9% at EGP 26.20 on their EGX debut yesterday, valuing the fintech’s Egyptian arm at some EGP 41.9 bn. That’s short of the 10-20% first-day gain Randa Hamed, managing director at Okaz for Portfolio Management, had forecast, though the stock briefly touched EGP 28.80 intraday. Parent MNT Investments BV sold a 20% stake at EGP 24.50 apiece in a fully secondary IPO that raised EGP 7.84 bn. It now plans to inject up to EGP 4 bn into the Egyptian arm through a closed capital increase at the offer price. Founder and CEO Mounir Nakhla told us yesterday that the money will strengthen the balance sheet and fund growth.
PSA-
WEATHER- Cairo is in a comfortable holding pattern today, with a high of 27°C, and a low of 17°C, a notch cooler overnight, according to our favorite weather app.
It’s a touch milder on the coast in Alexandria too, with a high of 26°C and a low of 18°C.
The big story abroad
SpaceX and Tesla have set up special committees to explore a merger, Elon Musk, chief executive of both companies, said during a SpaceX earnings webcast. A deal is expected to be the largest corporate merger ever. Musk said he will not take part in the discussions because of a conflict of interest, and added that the negotiators have yet to reach an agreement.
More blockbuster moves: Blackstone and Warburg Pincus are weighing a sale of deposit network operator IntraFi in a deal that could put its worth above USD 10 bn. IntraFi runs what it calls the biggest reciprocal deposit network in the US, enabling banks to distribute client funds across multiple banks to extend federal deposit insurance to balances over USD 250k. The sale is in early stages, with Morgan Stanley and Guggenheim Securities advising IntraFi.
Netflix and chilled expectations? Netflix reported its slowest revenue jump since 2023 and forecast further slowing in 4Q, amplifying doubts about the streaming giant’s performance. Sales grew 12% y-o-y to USD 12.9 bn in 3Q, matching Wall Street expectations, while net income increased 44% to USD 3.7 bn.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: EnterpriseAM’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.
In today’s issue: We look into how megaprojects from Ras El Hekma to Alam El Roum are using Gafi’s investment zones to fast-track their permits, and where the tax breaks actually come from.




