Companies in the process of registering on the Egypt Stock Exchange (EGX) are Emaar Misr, oil firm Advanced Energy Systems (ADES Group) and Al Tawfeek Leasing Company (ATLC), the EGX told Daily News Egypt on Sunday.
Over 20 companies have been listed on the EGX with over EGP 5bn in capital since May 2014, EGX Chairman Mohamed Omran announced.
In a statement issued by the bourse, Omran said this “success” came after the first summit for the initial public offering (IPOs) that took place in May 2014. This gathered companies and officials to define and analyse the Egyptian companies’ listing in the stock market.
Omran noted that the EGX is preparing for the second annual summit for IPOs and increasing capitals under the patronage of Prime Minister Ibrahim Mehleb. “This conference shapes a chance for promising companies to expand and obtain finance from financial institutions and investment banks” he added.
The conference, which will be held on 9 June, will focus on emerging investment opportunities in the Egyptian market, especially the volume of development in the legislative and organisational structure recently witnessed by the market.
Ministerial sessions will be included in the conference to discuss benefitting from the Egyptian financial market through restructuring public companies and helping in increasing their capital, the EGX said.
The conference will also discuss the possibility of the Egyptian bourse’s financing of giant projects through IPOs. International financial institutions were invited to attend the summit, the stock market said.
Days before the summit, the first IPO held after the January 2011 Revolution was launched by Arabian Cement Company in May, with the company aiming to raise $100m by listing on the EGX.
Egyptian snack food producers, Edita Food Industries Company, launched an IPO in March. It announced the pricing of the institutional offering of 92,483,770 of its ordinary shares to be listed on the EGX and also on London’s bourse through the global depositary receipts (GDRs).
The offer price has been set at EGP 18.50 per ordinary share and $12.28 per GDR; thus the market capitalisation of the company is EGP 6.7bn (approximately $891m), according to Edita’s statement.
Another leading company announcing its stock market listing this year was the Egyptian arm of UAE-based real estate developer Emaar Misr. The IPO will encompass an offering of up to 600m shares, representing 13% of the company’s post-offer share capital, the company noted.
Early this month, Emaar Misr approved the independent financial advisor’s recommendation, setting the fair price of shares at maximum EGP 4. Emaar Misr has outlined it aims to raise EGP 2.8bn through issuing 600m shares on the bourse. Trading on the company’s shares is expected to begin by mid-June, a company official told Daily News Egypt.
The Egyptian stock market announced Emaar Misr’s request to list its shares in February. Approvals are yet to be obtained from the Egyptian Financial Supervisory Authority (EFSA) and the EGX regarding the IPO, Emaar said on 20 May.
In early March, the EGX also approved Orascom Construction’s (OC) EGX listings, with capital amounting to $105m. In November 2014, the company announced that it will obtain an IPO in 2015.
OCI NV reported that its Orascom Construction will pursue a dual listing in Egypt and the UAE, adding that “preparations for the separation of the Engineering and Construction Group from OCI NV are underway”. OC has officially applied its listing request to the EGX in February.
In 2005, only three companies had IPOs that amounted to EGP 7.6bn. That number surged to 22 companies in 2006; however, the offerings amounted to EGP 3.7bn. In 2007, 20 companies were listed, totalling EGP 21.4bn, while in 2008, the amount of offerings for 24 companies was EGP 6.4bn.
Between 2009 and 2011, 30 companies were listed on the stock market with a total value of EGP 5.7bn, with 2011 contributing eight companies and EGP 0.5bn to those figures.
Listings surged in 2012 to total 11 companies and a value EGP 2.5bn, only to drop in 2013, with nine companies entering the stock market with a total value of EGP 0.2bn.