Capital gains from EGX-listed securities to be taxed starting 2025

1

What We're Tracking Today

Capital gains taxes incoming in 2025

Good morning, folks. You’ve done it. You’ve made it until the end of the week and you have a well-deserved long weekend ahead. In case no one’s told you, the public and private sectors and all banks will be off on Sunday and Monday in observance of Labor Day and Sham El Nessim next week.

And that includes EnterpriseAM Egypt, which will be taking a break from your inbox until Tuesday morning, when we will be back with all the most important local business news to keep you up to date.

We’ve got a packed issue for you today, with news the capital gains taxes are coming in 2025, the narrowing of our net foreign asset deficit, ACUD’s whopping tax bill for 2023 showing us just how big the company has become, and much, much more for you today.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

PSA-

#1- Firms have a three-day, penalty-free extension to submit their tax returns: The Tax Authority has extended the deadline for companies to submit their income tax returns by three days without penalties, provided that due tax has been paid within the legal deadline of 30 April.

Help is at hand: Companies can receive free technical support from the authority’s tax filing support centers and by calling up the hotline on 16395, Tax Authority head Rasha Abdel Aal said in a statement.

#2- Expats can still transfer FX (but not apply) to import cars for another month: The cabinet gave the thumbs up to a proposal from the Immigration Ministry to extend the duration for receiving FX transfers from Egyptian expats to import cars for a month.

The rationale: There are many pending FX transfers from those who have already been accepted into the program. This is not an extension for the whole scheme that ended on Monday but only a 30-day window to process outstanding transfers and existing requests.

#3- There’s a road safety hotline now for citizens reports: The General Authority for Roads and Bridges will receive citizens reports and complaints against road safety violations and encroachments on a new hotline and via Whatsapp, according to a Transport Ministry statement. Citizens can now report such incidents by dialing 19487, or by sending photos or videos of road safety violations on the Whatsapp number 01207255273.

WEATHER- It’s another partly cloudy morning followed by sunshine in Cairo today, with a high of 31°C and a low of 20°C, according to our favorite weather app.

While in Alexandria, expect to see a high of 26°C and a low of 18°C.

And over the long four-day weekend, expect to see temperatures staying at around 30°C in the capital. The weather for our friends on the Mediterranean will start to cool starting tomorrow and settle in the mid-twenties for the rest of the long weekend.

EGX WATCH-

The EGX30bounced back 3.4% at yesterday’s close, with all but two of the index’s components ending yesterday’s session in the green, after having dropped 6.0% the day before to a four month low. The index now sits at 25,271 and is back in green since the start of the year by 1.5% YTD.

WATCH THIS SPACE-

#1- Gov’t to collect capital gains tax starting 2025: The Madbouly government plans to start collecting taxes on capital gains incurred from trading EGX-listed financial securities starting March-April 2025, according to a cabinet statement.

The rationale: The executive regulations of the law governing capital gains tax aren’t published yet, and there is yet to be a clear procedure to calculate and collect capital gains tax dues, according to cabinet spokesman Mohamed El Homsani. Until then, the Tax Authority and the Misr for Central Clearing, Depository, and Registry company will outline the procedures that need to be followed to calculate and collect capital tax gains for 2024.

#2- AMOC stake sale could raise up to EGP 3.8 bn: The sale of the National Bank of Egypt and Banque Misr’s combined 26.1% stake in EGX-listed Alexandria Mineral Oils Company (AMOC) could raise between EGP 3.5-3.8 bn, Alarabiya reported, citing anonymous sources.

Two final offers are currently on the table: The company has completed due diligence on an offer from a local investor and another from a Gulf investor, and is currently deciding on which one to choose, the sources said. The Egyptian General Petroleum Corporation is reportedly among the bidders, according to unconfirmed media reports.

The sale should be wrapped up in the next two months, with the sale expected to close by the end of 1H 2024, the sources told the outlet.

#3-ACUD is one of the country’s largest taxpayers: The Administrative Capital for Urban Development (ACUD) paid EGP 8 bn to the tax man in 2023, placing the company that was founded in only 2016 among the very top taxpayers in the country, a source at the Finance Ministry told Enterprise.

ACUD will also soon appoint an IPO advisor: The developer of the new administrative capital will select and announce the international financial advisor for its planned IPO in the third quarter this year, after the company wraps its pre-listing restructuring and due diligence, ACUD CEO Khaled Abbas told CNBC Arabia.

#4- Alghanim to invest USD 300 mn in Berenice port: Kuwait’s Alghanim International is reportedly looking to inject USD 300 mn worth of investments in the Berenice maritime port, Al Borsa writes, citing sources it said have knowledge of the matter. The funds will go to redevelopment, operation, and maintenance works in the port. The Transport Ministry reportedly gave the group three to six months to complete the project’s technical and financial studies.

Refresher: Alghanim International signed an MoU last month with Red Sea Ports Authorities to develop, manage, operate, maintain, and re-deliver Berenice Port benefitting from road networks connecting the port with other hubs along Egypt’s Red Sea coast, cities in Upper Egypt, and the Arqin border crossing with Sudan.

ATTENTION, EGYPT INVESTORS-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

FACT CHECK-

Gabal El Zeit wind power station sale rumors denied: The Madbouly government denied rumors circulating on social media platforms about the sale of the Gabal El Zeit wind farm to foreign investors at a price far below its construction costs, according to a cabinet statement.

Remember: Actis reportedly wrapped up due diligence on the 580-MW wind farm in February and the IMF thinks stake sales of the Gabal El Zeit and Zafarana wind farms will be finalized before the end of June.

NEWS TRIGGERS-

It’s the second day of May — here are the key news triggers to keep your eyes on in this month:

Inflation: Capmas and the CBE are expected to publish the inflation data for April next week. The likelihood that we’re on a deflationary path seems good, with annual urban inflation cooling 2.4 percentage points to 33.3% in March on the back of a softer increase in food prices as traders priced in a lower exchange rate following the fall of the parallel market.
Interest rates: The central bank’s Monetary Policy Committee will meet on 23 May to review rates. Most analysts are yet to unveil their forecasts, but Goldman Sachs expects the CBE to cut rates by 200 bps at its next policy meeting to bring rates down after its 600 bps rate hike in March alongside the EGP float.
Foreign reserves: Economists and analysts will be awaiting the release of April’s foreign reserves data from the central bank over the coming few days to see how fresh inflows coming our way following the float of the EGP will continue to affect our net foreign reserve position after our net foreign reserves rose in March to their highest level since Russia’s war on Ukraine and the global rise of interest rates triggered the flight of hot money from EMs.
PMI figures: S&P Global will publish Egypt’s PMI figures for April on Wednesday 8 May measuring the country’s non-oil private sector activity, which has been in contraction for the last 40 months. We’re still yet to see the hoped for uptick in business activity following the float of the EGP with March’s data showing “softer but still-solid deterioration” on the back of persistent currency challenges and elevated inflationary pressures.

THE BIG STORY ABROAD-

#1- Hamas is “negative” on Israel’s latest proposal as part of Cairo-brokered ceasefire talks, but said its negotiators would continue to engage in the process.

AND- US Democrats are putting pressure on Joe Biden to push Israel not to assault Rafah, where more than 1 mn people are taking refuge from Israeli forces, Reuters reports.

#2- The US Federal Reserve said it is “more likely to keep interest rates at their current level for longer than to raise them again,” the Wall Street Journal reports after the Fed wrapped last night its two-day monetary policy meeting. At issue with the higher-for-longer stance: “It is likely to take longer for us to gain confidence that we are on a sustainable path down to 2% inflation,” the Financial Times reports Fed chair Jay Powell as having said after the meeting. “I don’t know how long it will take.”

#3- The global press remains obsessed with pro-Palestinian protests in the United States, where hundreds were arrested yesterday as many university administrators called in police. Reuters | Wall Street Journal | BBC | Politico

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential morning read on all the important news shaping business and the economy in Egypt and the region — is looking for writers, reporters and editors to help us build out new publications.

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors and entrepreneurs.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists on subject matter knowledge, while also working on constructing and filing Enterprise stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

Join us for an unforgettable Easter vacation at Somabay from May 2-6: Enjoy daily beachside beats with DJ Van Heldt at S.Cape Beach, and special events like the World Jazz Day celebration, DJ Aly Fathalla at Sobar Rooftop and the Solorize Music Event. There's something for everyone with the Playpark Carnival, DJ Dennis at S.Cape Beach Club, and more daily activities. Book now for an Easter like no other.

Egypt’s net foreign asset deficit narrows in March following rise in FX reserves

Egypt’s net foreign asset deficit narrowed significantly in March as the banking system started to feel the impact of the wave of reforms introduced by the central bank — the float of the EGP and the jumbo rate hike — and the renewed investor appetite for local debt. Net foreign asset deficit fell to just under USD 4.2 bn in the Egyptian banking system marking its lowest deficit in two years, after having recorded nearly USD 22 bn in February, according to Enterprise calculations based on Central Bank of Egypt figures.

Remember: Foreign investors have poured USD 17.8 bn into Egyptian government debt in the first quarter of 2024, Egyptian Central Securities Depository CEO Yasser Zaazaa said last month. When taking into account the USD 5.6 bn of debt that foreign investors sold during the period, net purchases of Egyptian debt came in at USD 12.2 bn for the period.

Commercial banks were the main drivers: The net foreign assets deficit in commercial banks narrowed to USD 2.8 bn in March compared to USD 13.2 bn the month before. Foreign assets in commercial banks rose 44% m-o-m, while liabilities fell 10% m-o-m.

The central bank’s net foreign asset position also saw improvement: The CBE’s net foreign asset deficit narrowed to USD 1.4 bn in March from USD 8.7 bn the month prior.

Working out our net foreign asset position is a bit different this time round: This is the first net foreign liabilities figure calculated using a post-float exchange rate — foreign liabilities in the country’s banking system fell nearly 10% m-o-m in USD terms and rose over 40% m-o-m in EGP terms, while foreign assets were up 21% in USD terms and rose 88% when calculated in EGP.

Egyptian government approves USD 88 mn auto cables plants, ATIDI membership, fresh foreign assistance

The cabinet ministers approved a slew of decisions, proposals, and amendments at their weekly meeting yesterday, including a new automotive cable manufacturing project Egypt becoming an ITIDA member, and amendments to Egypt-US climate change and economic governance grants, according to a cabinet statement.

#1- Tunisia’s Coficab to set up auto cables and electrical wires plant: The ministers approved a request from Tunisian automotive cable manufacturer Coficab to establish an automotive cable and electrical factory, with investments up to USD 88 mn.

What we know: The plant will span some 30 k sqm in the Tenth of Ramadan industrial zone and create 205 jobs. The factory will earmark a sizable portion of its output — made using 60% locally-sourced materials — to exports. There were no details regarding the timeline, or when the new plant will be operational.

This isn't the first time we heard of Coficab: The company said in May 2023 that it would invest an initial EUR 25 mn to build a first phase of the cable factory in Tenth of Ramadan City, and intends to use part of the factory’s production to fulfill local demand and direct the remainder to export.

#2- Egypt to become an ATIDI member: The ministers also approved a proposal for Egypt to join the African Trade and Investment Development Ins. (ATIDI) in a bid to boost trade with other African nations. This should reduce the costs of transactions, as well as the cost of credit and ins. between Egyptian and African investors, lenders, exporters, and importers.

#3- West Alexandria plant gets a boost: The cabinet has approved additional funding from the European Investment Bank and the EU to expand and develop the West Alexandria wastewater treatment plant.

#4- Fresh funds for climate change fight: An amendment to the Egypt-US climate change grant adds USD 5.5 mn to the existing agreement was also approved yesterday, raising the total US contribution to USD 20.5 mn. The extra funds will enhance Egypt’s capacity to address climate change impacts and support ecosystem preservation, including efforts in the Red Sea.

#5- Boosting inclusive economic governance: The ministers approved an additional USD 13.5 mn from USAID to the US-funded comprehensive economic governance aid grant, increasing total aid to USD 110.0 mn. The grant focuses on improving economic governance activities, enhancing government service delivery, especially for marginalized groups, and expanding women's economic participation.

Elsewedy Electric to work with foreign firms to localize grain silo production in Egypt

Made-in-Egypt silos: Elsewedy Electric has inked an MoU with Swiss tech firm Bühler Group and Jordan-based firm IBC Group to work towards localizing the manufacture of grain silos in Egypt, according to a statement (pdf) from Elsewedy.

Who does what? Elsewedy and IBC will “spearhead the initiatives” to localize silo manufacturing, enhance food security, and help the sustainable development of the country’s agricultural sector. Bühler Group will contribute with technical support and research and development expertise, according to the statement.

Déjà vu? Talks held with the Belarusian side earlier this week also dealt with establishing grain silos in Egypt to serve the Egyptian market and export to other countries.

What they said: "By localizing strategic industries like grain silos, we strive to foster deeper manufacturing of components, and ultimately replacing imports with domestic production. Furthermore, this synergy will unlock avenues for exports, further solidifying Egypt's position in the regional food security landscape,” Elsewedy Electric CEO Ahmed El Sewedy said.

Remember: For years, the state has been working to boost its wheat storage capacity, building more silos and taking out loans to invest in silo development, all with the aim of ensuring none of our local harvest goes to waste due to lack of sufficient silo capacity and increasing wheat reserves. The Supply Ministry has a plan to increase the country’s silo capacity to 5.3 mn tons from its current 2.1 mn tons and cut down on the percentage of wheat that is wasted in the harvest and storage process.

Scatec and Orascom Construction-led consortium allocated land for two wind farms in Egypt that will generate 8 GW of energy

Another 8 GW of wind power incoming: The New and Renewable Energy Authority(NREA) signed two separate land allocation agreements for two wind farms expected to produce a combined 8 GW of energy in West Sohag, a cabinet statement said. The two projects will require a combined USD 9 bn in investments. The government signed MoUs for the two projects back during COP27 in Sharm El Sheikh (here and here).

Who’s behind the developments? The first agreement was signed with Norwegian renewables developer Scatec, which plans to invest USD 5.7 bn into developing a 5 GW wind farm, a second cabinet statement said. The second agreement was signed with local construction giant Orascom Construction on behalf of its consortium with a subsidiary of France’s Engie, Kahrabel, and Japan’s Eurus Energy. The OC-led farm is expected to generate 3 GW of energy when fully operational.

The impact: The wind farms will reduce some 17 mn tons of CO2 emission annually when fully operational and create 18k new direct and indirect jobs.

What’s next? The parties will now undertake site and technical studies for the projects in addition to assessing the environmental impact of building the wind farms, the statement said.

Remember: Egypt is aiming to have renewables make up 42% of its energy mix by 2030,according to a target that was laid out in the government’s updated Nationally Determined Contributions report in 2023.

ALSO IN RENEWABLES NEWS- Egypt to establish a fund to support nature-based projects? The Environment Ministry is currently working with the French Development Agency, European Bank for Reconstruction and Development, and a local unnamed bank to develop a fund to reduce the risks of private sector investments in nature-based solutions, Environment Minister Yasmine Fouad told a visiting EU delegation, according to a statement from the ministry.

More EU-Egypt climate cooperation ahead? The two also discussed working on a joint-policy document on how the private sector could contribute to developing nature-based projects, the statement added.

Swvl’s bottom line climbed to USD 3.1 mn in 2023

Cairo-born mass transit app Swvl has turned profitable in 2023, recording a net income of USD 3.1 mn, bouncing back from the USD 123.6 mn in net loss in 2022, the Nasdaq-listed company said in its earnings release (pdf). Revenues fell 48% y-o-y to USD 22.8 mn, driven by a 54% y-o-y drop in B2C operations as the company shifted its focus on more profitable segments. B2B operations contributed USD 16.64 mn, falling 56% y-o-y from 2022.

Swvl attributed its turnaround to focusing on “financial stability and operational efficiency, and the effective implementation of profitability strategies during the fiscal year.”

Egypt’s FX challenges are to blame for the revenue drop: The company attributed the modest B2B revenue primarily to “the change in EGP to USD rates, given that the Egyptian market during FY2023 contributed to approximately 90% of the total group revenues, and the EGP depreciated in value by 25% y-o-y,” according to the company’s financial statements. Swvl also said it had terminated contracts that failed to meet its minimum income requirements, resulting in an overall lower sales value.

Swvl slashed its cashflow deficit: The company’s negative cashflow fell to USD 9.1 mn in 2023, down from USD 117 mn in 2022. Swvl was able to shrink the deficit by funding its operations through improving “working capital cycles, and most recently from the disposition of certain assets while in 2022 the financing was dependent on equity financing,” Swvl said in its financial statements.

What they said: “As we advance, our commitment to innovation will be marked by the launch of a wide range of products slated for the upcoming year and for our new potential markets. Additionally, in the meantime, we are expanding our strategic partnerships into more GCC countries. Our focus today remains towards improving profitability while resuming our high paced growth,” Swvl CEO Mostafa Kandil said.

The company plans to grow its SaaS operations: “We intend to expand our Swvl Business offerings with SaaS in 2024 and 2025. Our SaaS offerings will be targeted at corporate customers (as well as schools and municipalities) that operate their own vehicle fleets, with specific services tailored to the needs of each customer,” the company said.

Background- Swvl was hit with two delisting warnings from Nasdaq last year after the market value of its listed securities dipped below the benchmark USD 50 mn, with its share price falling below the USD 1.00 mark for several months — collapsed by more than 98% after its IPO in April 2022. This was mainly due to market volatility, as well as rising expenses and costs associated with the listing. The company exited several markets by selling off a number of its subsidiaries and laying off 50% of its global workforce as part of its portfolio optimization strategy. Its shares are now up 615% YTD, ending yesterday at USD 11.45.

EFG Hermes tops the Egyptian Exchange brokerage league table in April

EFG Hermes’ brokerage arms topped the EGX’s league table in April with a market shareof 14.5%according to figures released by the exchange (pdf ). Rounding out the top five were Thndr Securities (8.5%), CI Capital (7.3%), Beltone (5.5%), and Mubasher Securities (5.4%). EFG Hermes has led the table for 11 months in a row now, it also held the top spot every month but one in 2023.

EFG Holding’s Tanmeyah picks up two awards from the Global Banking & Finance Review

Tanmeyah gets credit for its support of female entrepreneurs: EFG Holding’s microfinance subsidiary Tanmeyah has picked up two awards from the Global Banking & Finance Review magazine — the Best Financial Institution for Empowering Women in Business Egypt 2024 and the Best Microfinance Company Egypt 2024, according to a statement from the company that was picked up by Zawya. Nearly half of Tanmeyah’s client base are female entrepreneurs and 39% of its staff are women.

What they said: “By offering lending products tailored to support women entrepreneurs, we not only stimulate economic growth but also foster social equity. It's a strategic imperative that drives sustainable development and inclusion and contributes to the prosperity of communities and economies at large,” Tanmeyah’s CEO Jinu Johnson said.

But that’s not all for EFG Holding: Our friends at EFG Holding also walked away with awards from the Euromoney Awards for Excellence 2024 yesterday. EFG Holding took home the awards for Best Investment Bank and Best Bank for Corporate Responsibility.

Last night’s talk shows were electric with talk of EV charging points

It was a quiet night on the talk shows last night, but talk of our EV charging infrastructure made it onto the airwaves.

There is one charger for every five electric vehicles in Egypt, the CEO of renewables firm Infinity Power Nayer Fouad told Sherif Amer on Yahduth Fi Masr (watch, runtime: 5:02). Our friends at Infinity currently have 700 charging outlets spread across 170 stations in 14 governorates, Fouad added.

But there are obstacles to establishing a fully green network of EV chargers: Fouad pointed to the lack of sustainable energy sources in some areas as one of the reasons, adding that his company ultimately aims to have clean electricity sources in these stations.

Another challenge lies in low-capacity batteries, according to Fouad. “The biggest charger we have now has a 90 KW capacity,” Fouad said, adding that they they’ve had 175 KW chargers stored away in warehouses for two years, but “we can’t set them up” because of either a lack of electrical transformer stations’ support or the high set-up costs charged by distributors — which can go up to EGP 3 mn per charger.

Xinxing has another USD 250 mn worth of investments in the pipeline for Egypt. PLUS: Locally made e-bikes, MM Group Saudi expansion, Madinet Masr launches Sarai project, CIB eyes green on-lending funds, Farahy looks to GCC investors

MANUFACTURING-

#1- More Xinxing factories in TEDA: China’s state-owned Xinxing Ductile Iron Pipes Company is planning to follow up their recently under construction iron pipes factory in the TEDA industrial park with USD 250 mn of future investments in the park, the chairman of the country’s Egypt operations told Asharq Business in an interview (watch, runtime: 1:05). The future investments will include building a grating factory and a foundry as part of the company’s second phase of investments.

Remember: The SCZone said Tuesday that Xinxing had begun construction on a USD 146 mn ductile iron pipe factory in the TEDA industrial park. The plant will produce 250k tonnes of cast iron pipes per year with an annual production value of USD 1.2 bn.

#2- More e-bikes to hit Egyptian streets: Smart electric bike manufacturer EGIKE wants to set up an integrated factory producing electric bicycles, founder and CEO Montaser El Attar told Al Borsa. The factory will be the first of its kind in the Middle East and Africa.

Fresh funds incoming: The company is currently in negotiations to close a USD 500k financing round.

RETAIL-

MM Group eyes Saudi launch in 2H 2024: EGX-listed MM Group for Industry and International Trade (MTI) is planning to enter the Saudi market in 2H 2024, an anonymous MTI employee told Asharq Business. MTI will sell electronic and home appliances through its Saudi venture company. MTI is also looking to grow its non-banking financial activities in the Kingdom in the future with an eye on also expanding into the Emirati market, the source added.

REAL ESTATE-

Madinet Masr kicks off new Sarai development project: Real estate developer Madinet Masr has launched its Sheya project at its Sarai development in New Cairo, it said in a press release (pdf ). Sheya, which will be fully complete within four years, will encompass residential units, villas, apartments, studios, and duplexes, in addition to recreational facilities.

DEBT-

CIB seeks more EBRD funds for green on-lending: CIB wants to borrow USD 50 mn from the European Bank for Reconstruction and Development for on-lending to local green projects, writes Asharq Business, citing an anonymous source close to the matter. CIB, which received USD 150 mn from EBRD at the end of 2023, is looking to secure the new funding in 2H 2024, the source added.

STARTUPS-

Farahy wants to raise funds for Saudi expansion: Local wedding and events services startup Farahy will target Egyptian and Gulf investment funds during its first funding round that will support the platform’s Saudi expansion, founder and CEO Nadine Farrag told Al Mal. The startup was a recent winner of the Value Makers Studio Bridge program, designed to give seed and pre-series A startups exposure to the Saudi market.

Spinneys’ IPO subscription attracts 71 bn in orders

Supermarket chain Spinneys Dubai raised AED 1.38 bn (USD 380 mn) from its IPO after pricing it at the top of the initial price range, with over AED 71 bn in orders from local, regional, and international investors at the close of the offering period, according to a statement (pdf).

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Final share price: The Albwardy family-owned company set its final IPO price at the top of its initial price range at AED 1.53 per share. This gives the company a market cap of AED 5.51 bn.

The breakdown: The institutional portion of the offering was heavily oversubscribed, while there tail portion closed on Monday at a 20x oversubscription rate, according to the statement. The retail giant boosted the size of the retail portion on high demand to 7% of the offering, with institutional investors getting 93%. It also attracted Emirates International Investment Company and Franklin Templeton as cornerstone investors, with the two investors committing to purchase AED 275 mn worth of shares in the offering.

Shares will start trading on the DFM on Thursday, 9 May, under the ticker SPINNEYS, the statement reads.

Refresher: Al Seer Group is selling 900 mn of its shares — good for a 25% stake — in the company on the DFM. The IPO will be among the first by a family-owned business in the UAE, and comes ahead of plans to expand into Saudi Arabia in 1H 2024.

Advisors: Our friends at HSBC Middle East are joint global coordinators alongside EmiratesNBD Capital and Merrill Lynch. Our friends at EFG Hermes are joint bookrunners, while Rothschild Middle East is an independent financial advisor. Emirates NBD Capital is also acting as listing advisor, while Emirates NBD Bank is lead receiving bank. Other receiving banks include our friends at FAB as well as MBank and Commercial Bank of Dubai.

MARKETS THIS MORNING-

Asian shares are mixed this morning, with the Nikkei and Kospi in the red while Hong Kong’s Hang Seng is flat and the ASX 200 is up 0.3%. The Shanghai Stock Exchange remains closed as China observes an extended labor day holiday.

Traders seem to be happy with Jay Powell’s comments that interest rates would stay put for a while longer: Dow, Nasdaq, and S&P futures are all up 0.4% or more in overnight trading.

European stocks look set for a softer open, with futures for most of the continent’s major benchmarks trending lower at dispatch time this morning.

EGX30	25,271	+3.4% (YTD: +1.5%)
USD (CBE)	Buy 47.80	Sell 47.94
USD (CIB)	Buy 47.83	Sell 47.93
Interest rates CBE	27.25% deposit	28.25% lending
Tadawul	12,345	-0.4% (YTD: +3.16%)
ADX	9,032	-0.4% (YTD: -5.7%)
DFM	4,133	-0.5% (YTD: +1.8%)
S&P 500	5,023	-0.3% (YTD: +5.3%)
FTSE 100	8,121	-0.3% (YTD: 6.5%)
Euro Stoxx 50	4,921	-1.2% (YTD: +8.8%)
Brent crude	USD 83.44	+3.4%
Natural gas (Nymex)	USD 1.93	-0.1%
Gold	USD 2,331.50	0.9%
BTC	USD 57,436.50	-4.2% (YTD: 36.0%)

THE CLOSING BELL-

The EGX30 rose 3.4% at yesterday’s close on turnover of EGP 2.4 bn (51.3% below the 90-day average). Local investors were net buyers. The index is up 1.5% YTD.

In the green: Talaat Moustafa Group (+7.9%), Heliopolis Housing (+7.9%) and Juhayna Food Industries (+7.1%).

In the red: Delta Sugar (-1.0%) and Edita (-0.7%).

My Morning Routine: Heather Ibrahim-Leathers, president, founder and chair of the Global Fund for Widows

Heather Ibrahim-Leathers, president of the Global Fund for Widows: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Heather Ibrahim-Leathers (LinkedIn), president of the Global Fund for Widow s.

My name is Heather Ibrahim-Leathers, founder, president and chair of the Global Fund for Widows, a global non-profit that builds microbanks for widows called the Widow Savings and Loan Association (WSALA). We work off a gameya (AKA money circle) or village savings and loan structure, but on steroids. It’s a model that can be taken to any country and modified to fit the needs of the widows and the culture of the country. So far, in Egypt we’ve partnered with HSBC Egypt to build 40 WSALA’s.

The fund started from my kitchen table: After the passing of my grandfather, my grandmother’s life went from being really wonderful to impoverished overnight and I wanted to understand why that happened. It came down to the moment she was widowed and basically disinherited by family members, who took all of her assets and her wealth, leaving her to make decisions like which of her children she could afford to educate, a choice that caused multi-generational impoverishment for some of her children, while those that were educated went off to have incredible lives.

It’s a sustainable option to traditional microloans: Traditional microloans tend to require collateral or a male co-signer, making widows ineligible. Plus, we found that while we could provide widows with funds to build a farm or a palm oil mill, it wasn’t a sustainable, prepackaged, elegant solution. I realized that financial inclusion was the key missing element.

True sustainability provides financial inclusion and wealth: I always say that it’s not enough for me to teach the widows how to fish, I want them to own the lake, because then they can charge for shipping, concession, and parking rates — that’s true sustainability, financial inclusion, and wealth creation.

A virtuous cycle: What we found is that widows who come in use the funds to send their children to school, with their second priority being the health and nutrition of their family, leaving any excess capital to go back into the bank in order to purchase more shares. In our first year of establishing WSALA’s in Egypt, we found that education spending increased some 304% amongst widows.

Our teams across the world are facing many of the same challenges, whether its inflation, the fallout from the war in Ukraine, fuel price impacts, or post-Covid issues, while other issues, such as climate change, tend to affect each country differently.

The work day starts at 9am with a Wall Street-style morning meeting — it’s my one constant of the day. Everyone dials in from around the world and provides a daily update so that we get to build relationships and then it’s back-to-back calls with our partners in Kenya, Tanzania, and Egypt. In Egypt, Alfanar serves as our management partner and members from NGO Future Eve Foundation serve as our boots on ground.

Later in the day, the team and I attend meetings with investors and funders. We could have meetings at the UN or with different ambassadors and heads of committees to talk to them about what our fund does, how we can collaborate, and to hear their thoughts, so largely I spend a lot of time on Zoom. Our in-country teams do the heavy lifting, I’m kind of just doing it all from behind the screen.

Moms just have to work a lot harder, and it’s probably not fair. I was lucky, I was able to leave my day job and start the Global Fund for Widows with the flexibility to work around family. It’s important as you’re balancing work and life to think about yourself, because at the end of the day our children leave us to start their own lives — it’s an indicator of success — so you can’t give everything to them and lose yourself.

Friday date nights: Ever since the kids were born, my husband and I have done something together every Friday night, like going out to eat, to museums, a play, or a baseball game followed by dinner where our rule is that we’ll only talk about the kids for 15 minutes. It doesn’t always work out, but at least we try.

A podcast I love is called Founder Spiritwith Jennifer Wu, she has the most incredible speakers and conducts such in-depth research on each of her guests. I also normally have Bloomberg TV on in the background from when I wake up, I need the noise in order to focus and it takes me back to the trading floor.

The best piece of advice I’ve seen was written on the whiteboard of a JPMorgan director that I could see across the trading floor that said “know what you don’t know.” It took about a year for it to hit me and I think it underscores a growth mindset. We don’t have all the answers — nor should we — there’s a lot of talent out there and we have to be humble enough to know that.

CALENDAR

2024

MAY

2-5 May (Thursday-Sunday): Townhall Expo in Riyadh.

5 May (Wednesday): National holiday in observance of Labor Day (national holiday).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (national holiday).

19-21 May (Sunday-Tuesday): Egypt International Summit for Digital Transformation and Cybersecurity.

20 May (Monday): Malaysian Palm Oil Forum in Cairo, with attendance from Malaysian Plantation and Commodities Minister Johari Abdul Ghani.

23 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

29 May (Wednesday): Virtual launch of Chicago Booth Executive Program.

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC) (national holiday).

29-30 June (Saturday-Sunday): EU-Egypt Investment Conference.

30 June (Sunday): June 30 Revolution Day (national holiday).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

18 July (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

23 July (Tuesday): Revolution Day (national holiday).

AUGUST

4-5 August (Monday-Tuesday): Egypt Expat Forum.

SEPTEMBER

2-5 September (Monday-Thursday): Egypt International Airshow, El Alamein International Airport.

5 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

15 September (Sunday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

25-26 September (Wednesday - Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

NOVEMBER

21 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

DECEMBER

26 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

April 2024: President Abdel Fattah El Sisi will visit Turkey.

1Q 2024: Egyptian-Qatari Joint Supreme Committee.

1Q 2024: Opening of the newly developed Pyramids Plateau in Giza.

1Q 2024: The government is set to finalize the sale of the Gabal El Zeit wind farm.

February-May: The Grand Egyptian Museum could officially open to visitors.

March 2024: The USD 2.7 bn MIDOR Refinery is set to begin full operations.

May 2024: Egypt to receive USD 20 bn of Ras El Hekma funds.

May 2024: Arab Finance Ministers’ meeting at Egypt’s administrative capital.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

Mid-year: The fifth Japan-Arab Economic Forum.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

2025

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

Sections

About

Privacy & Support

Get EnterpriseAM daily