{"id":589742,"date":"2023-07-09T00:00:00","date_gmt":"2023-07-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/09\/this-morning-taqa-arabia-shares-start-trading-on-the-egx-today\/"},"modified":"2023-07-09T00:00:00","modified_gmt":"2023-07-09T00:00:00","slug":"this-morning-taqa-arabia-shares-start-trading-on-the-egx-today","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/09\/this-morning-taqa-arabia-shares-start-trading-on-the-egx-today\/","title":{"rendered":"THIS MORNING: Taqa Arabia shares start trading on the EGX today"},"content":{"rendered":"

Good morning, wonderful people, and welcome to the start of a new week. <\/span>The news cyc<\/span>le is easing us into the first full work week after two shorter weeks thanks to public holidays \u2014 and we likely have another two short weeks ahead. <\/span><\/p>\n

THE BIG STORY here at home: It\u2019s more privatization murmurs, <\/span>as a local media report <\/span>claims state-owned real estate player El Mostakbal is the latest firm to be added to the Sovereign Fund of Egypt\u2019s pre-IPO fund. We have all the details in the newswell, below. <\/span><\/p>\n

<\/a> <\/span>AT LONG LAST, YBG IS CLEARED: A criminal court in Cairo has acquitted pre-revolution f<\/span>inance minister Youssef Boutros-Ghali of profiteering<\/span> and other charges that he misused the powers of his office. The politically motivated charges date to June 2011, when YBG was sentenced in absentia to a 15-year prison turn in what became known as the \u201ccustoms case,\u201d which centered around allegations he had authorized the use of some 100 cars in a customs warehouse. <\/span>Youm7 has the story.<\/a><\/span> It\u2019s the second acquittal for Boutros-Ghali, who late last fall was cleared in the so-called <\/span>\u201clicense plate\u201d case<\/a><\/span>. <\/span><\/p>\n

Dr. Youssef is one of the good guys, folks<\/span> \u2014 a loyal civil servant who overhauled the state\u2019s <\/span>finances, built international belief in Egypt\u2019s finances, and launched a valiant bid to make it cool to pay your fair share of taxes. News website Cairo24 quotes YBG as saying he <\/span>plans to soon come home to Egypt<\/a><\/span> \u2014 it would be good to see him back home and able to contribute once again to public life.<\/span><\/p>\n

<\/a> <\/span>PSA#1- For our friends in Sahel \u2014 consider staying on dry land today and <\/span>tomorrow. <\/span>The national weather service is <\/span>warning<\/a><\/span> that winds of 50-70 km per hour could whip up rogue waves up to 4 meters high along the Mediterranean coast today and tomorrow. The capital is in for highs of 35\u00b0C across the week paired with high humidity, <\/span>with the mercury heading into the 40s at the weekend.<\/span><\/p>\n

PSA #2- more public holidays are just around the corner <\/span>to mark Islamic New Year <\/span>(Tuesday, 18 July) and Revolution Day (Sunday, 23 July). We still don\u2019t know if we\u2019ll get two <\/span>three-day weekends, or one four-day break running Thursday, 20 July-Sunday, 23 July. <\/span><\/p>\n

WHAT\u2019S HAPPENING TODAY-<\/span><\/p>\n

<\/span><\/a> <\/span>The EGX\u2019s first debut of 2023 starts trading today:<\/span> Taqa Arabia shares <\/span>will <\/span>begin trading<\/a><\/span> on the EGX today under the ticker TAQA after the Financial Regulatory <\/span>Authority last week <\/span>gave the Qalaa Holdings subsidiary the green light (pdf)<\/a><\/span>. The energy distribution company\u2019s shares will begin trading at the nominal price of EGP 0.50 apiece.<\/span><\/p>\n

Reminder:<\/span> Taqa is selling shares to public investors via a <\/span>direct offering<\/a><\/span>, rather than going the conventional IPO route.<\/span><\/p>\n

We have a valuation:<\/span> Taqa Arabia shares have been valued at EGP 8.90 a piece, handing the company an <\/span>EGP 12 bn<\/span> (USD 393 mn) valuation, according to <\/span>a regulatory filing (pdf)<\/a><\/span> last week.<\/span><\/p>\n

About the company:<\/span> Taqa Arabia is one of the country\u2019s leading energy distribution and utility companies, with operations spanning gas transmission and distribution, power, renewable energy, and water. The company has EGP 676.2 mn of capital split between 1.352 bn shares. Qalaa indirectly owns about 55% of the company, with the remaining shares reportedly split between at least 300 other shareholders.<\/span><\/p>\n

Advisors: <\/span>EFG Hermes is quarterbacking the transaction, while Zulficar & Partners are providing counsel. Baker Tilly is the independent financial advisor and PwC is the auditor<\/span>.<\/span><\/p>\n

<\/p>\n

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<\/a> <\/span>MACRO WATCH- <\/span>Egypt added another USD 130 mn to its foreign reserves in June:<\/span> R<\/span>eserves inched up to USD 34.81 bn in June from <\/span>USD 34.66 bn<\/a><\/span> in May, according to <\/span>c<\/a><\/span>entral bank figure<\/a><\/span>s<\/a><\/span>. This is the ninth consecutive month that foreign reserves have increased, albeit very modestly each time.<\/span><\/p>\n

ELECTIONS 2024-<\/span>T<\/span>he Rep<\/span>ublican People\u2019s Party agreed by vote to<\/span> enter the 2024 presidential election<\/span> and will nominate their candidate within the coming few days, according to <\/span>a party statement<\/a><\/span> last week.<\/span><\/p>\n

IN THE HOUSE- <\/span><\/p>\n

<\/a> <\/span>M<\/span>Ps are back \u2014 and then gone again:<\/span> The House of Representatives reconvenes<\/span> following a three-week Eid break, with sessions scheduled for today, tomorrow, and Tuesday before it breaks for three months for the summer. MPs are today set to hold discussions and vote on:<\/span><\/p>\n