{"id":577031,"date":"2022-11-07T04:00:57","date_gmt":"2022-11-07T04:00:57","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/07\/exile-on-wall-street\/"},"modified":"2022-11-07T04:00:57","modified_gmt":"2022-11-07T04:00:57","slug":"exile-on-wall-street","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/07\/exile-on-wall-street\/","title":{"rendered":"Exile on Wall Street?"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-07\"><\/a> <strong>Swvl gets a first warning from Nasdaq over its low share price:<\/strong> Cairo-born ride-hailing startup Swvl has received a notice from the Nasdaq saying that it has 180 days to raise its share price or run the risk of being delisted from the US exchange, the company said in a <a href=\"https:\/\/investors.swvl.com\/node\/7961\/html\">regulatory filing<\/a> on Friday. This gives the company until 1 May 2023 to bring its share price above USD 1.00 a share for at least 10 consecutive days before it receives a notice of a potential delisting.<\/p>\n<p><strong>The problem:<\/strong> The ride-hailing startup has consistently traded below USD 1.00 per share since the third week of September and is currently changing hands at around USD 0.51 per share \u2014down almost 95% from its USD 10.00 debut in April. According to Nasdaq delisting rules, the index sends a deficiency notice to any company whose share price remains below USD 1.00 for 30 consecutive business days. The listed firm then has 180 calendar days to get its share price back up above the minimum threshold or face delisting.<\/p>\n<p><strong>The game plan: <\/strong>Swvl is currently considering a reverse stock split \u2014 whereby it combines some of its shares to leave fewer, higher-priced shares in the market \u2014 and\/or requesting an extension from the Nasdaq that would give it another 180 days to boost its share price, Swvl CFO Youssef Salem told Enterprise. \u201cThere\u2019s a chance the share price recovers, so we still need to decide,\u201d Salem said. The SEC filing notes that \u201cSwvl\u2019s continued listing on Nasdaq remains a key priority for the company.\u201d<\/p>\n<p><strong>Swvl is banking on solid earnings to reverse its fortunes: <\/strong>Swvl plans to become cash-flow positive by next year as it looks to ride out global headwinds. \u201cBeing cash flow positive could correct the movement of the share price,\u201d Salem said, echoing earlier <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/f67163ca-dac3-4f5f-bd51-4f86898968bc\">statements<\/a> given to Bloomberg Asharq by CEO Mostafa Kandil. Swvl is already turning a profit in 70% of its operating markets, Kandil was quoted as saying.<\/p>\n<p><strong>REMEMBER- It\u2019s not just Swvl: <\/strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/17f04346-eb07-4f3e-b8c1-2dc6c5f16502\">More than three-quarters of US corporations<\/a> that listed during the pandemic bull run are now trading below their offering price amid global market volatility, forcing many to reverse course and return to the private markets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Swvl gets a first warning from Nasdaq over its low share price: Cairo-born ride-hailing startup Swvl has received a notice from the Nasdaq saying that it has 180 days to raise its share price or run the risk of being delisted from the US exchange, the company said in a regulatory filing on Friday. This [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":577032,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7258],"tags":[72,78,120,95,123,507],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-577031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup-watch","tag-enterpriseam","tag-ipo-watch","tag-nasdaq","tag-startup-watch","tag-startups","tag-swvl","wpautop","entry"],"acf":{"mongo_id":"762754de-c039-4c7c-b845-6b0bc96eb9c9","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/11\/112.jpg","photo_position":"above","related_issue":[577015],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Exile on Wall Street? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/11\/07\/exile-on-wall-street\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Exile on Wall Street?\" \/>\n<meta property=\"og:description\" content=\"Swvl gets a first warning from Nasdaq over its low share price: Cairo-born ride-hailing startup Swvl has received a notice from the Nasdaq saying that it has 180 days to raise its share price or run the risk of being delisted from the US exchange, the company said in a regulatory filing on Friday. 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The agreement will see the establishment of a joint venture to\u2026","rel":"","context":"In &quot;Also on our Radar&quot;","block_context":{"text":"Also on our Radar","link":"https:\/\/enterpriseam.com\/egypt\/category\/also-on-our-radar\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":578997,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/22\/swvl-hit-with-a-second-nasdaq-delisting-notice-will-unwind-volt-lines-acquisition\/","url_meta":{"origin":577031,"position":1},"title":"Swvl hit with a second Nasdaq delisting notice, will unwind Volt Lines acquisition","author":"enterpriseam admin","date":"22 January 2023","format":false,"excerpt":"The company has traded below USD 1.00 a share since mid-September","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/1\/359.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":579162,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/29\/volt-lines-confirms-swvl-breakup-reverse-stock-split-boosts-swvl-share-price\/","url_meta":{"origin":577031,"position":2},"title":"Volt Lines confirms Swvl breakup + Reverse stock split boosts Swvl share price","author":"enterpriseam admin","date":"29 January 2023","format":false,"excerpt":"Volt Lines confirms Swvl breakup: Turkish mobility business Volt Lines\u2019 management team is back in the driver\u2019s seat after taking back control of the company from Swvl, it confirmed in a press release (pdf) on Thursday. The two sides agreed to terminate the USD 65 mn acquisition in December and\u2026","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/1\/476.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":550229,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/19\/swvl-could-get-booted-off-the-nasdaq-oih-joins-the-egx-buyback-club\/","url_meta":{"origin":577031,"position":3},"title":"Swvl could get booted off the Nasdaq + OIH joins the EGX buyback club","author":"enterpriseam admin","date":"19 October 2022","format":false,"excerpt":"US- and locally-listed firms are steering their stock through choppy waters: Over on Wall Street, Cairo-born Swvl is reportedly considering combining (through a reverse stock split) or canceling some of its shares as it looks to avoid delisting due to low trading price. Closer to home, Orascom Investment Holding is\u2026","rel":"","context":"In &quot;Capital markets&quot;","block_context":{"text":"Capital markets","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/capital-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":585194,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/12\/new-investment-offers-could-throw-swvl-a-lifeline-after-delisting-warnings\/","url_meta":{"origin":577031,"position":4},"title":"New investment offers could throw Swvl a lifeline after delisting warnings","author":"enterpriseam admin","date":"12 April 2023","format":false,"excerpt":"The company has lost more than 99% of its value","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/4\/500.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":577443,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/23\/more-swvl-layoffs-as-company-continues-quest-to-turn-cashflow-positive\/","url_meta":{"origin":577031,"position":5},"title":"More Swvl layoffs as company continues quest to turn cashflow positive","author":"enterpriseam admin","date":"23 November 2022","format":false,"excerpt":"Swvl hands out more pink slips: Cairo-born mass transport app Swvl carried out a second wave of layoffs, Bloomberg Asharq reports, citing a number of people who have recently been let go. Swvl had already let go a third of its global workforce this year amid tough economic conditions but\u2026","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/11\/352.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/577031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=577031"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/577031\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/577015"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/577032"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=577031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=577031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=577031"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=577031"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=577031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}