Egypt adds listings worth $262M to index

Egypt exchange additions follow bullish 2021
Egypt adds listings worth $262M to index

Days before 2021 ended, the Egyptian Financial Supervisory Authority (EFSA) finalized the registration of three companies in preparation for their listing on the Egyptian Stock Exchange.

The companies’ market value is more than EGP4 billion (about $262 million).

The companies are: Macro Group Pharmaceuticals, better known as Macro Capital, operating in the healthcare and pharmaceutical sector with a fair value of EGP3.5 billion; Nahr Al Khair for Development, Agricultural Investment and Environmental Services operates in the food sector with a fair value of half a billion Egyptian pounds; And a third smaller company operating in the engineering and contracting sector with a fair value of around EGP117 million will be listed on the Small and Medium Enterprises Exchange.

Mohammed Omran, head of EFSA, explained that the registration of three new companies for listing on the Egyptian Stock Exchange would provide an opportunity for the companies to increase the volume of their businesses, enhance opportunities to attract foreign investments and diversify investment options for all investors.

In addition, Omran revealed that 11 issues of securitization bonds are set to obtain EFSA’s approval out of 26 applications before the end of 2021, with a total value close to EGP11.5 billion. Their financing portfolios vary between real estate and financial services.

It is noteworthy that securitization bonds are issued through one of the securitization companies licensed by the Financial Supervisory Authority.

Omran further revealed that 2021 witnessed, for the first time, 26 bond issuance applications with a total value of EGP21.5 billion, of which 15 have already obtained EFSA’s approval with a value exceeding EGP10 billion, and this includes the first issuance of green bonds for companies with a value of $100 million, equivalent to EGP1.5 billion.

It is noteworthy that Egyptian Prime Minister Mostafa Madbouly said in statements last month that his country intends to list five to six state-owned companies on the stock exchange before the end of the fiscal year that ends in June 2022.

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