Egypt’s stock exchange (EGX) wrapped up the week with diverse outcomes across its indices, reflecting a robust investment climate and growing anticipation for upcoming IPOs. The EGX30, which tracks the top 30 companies on the exchange, edged up by 0.09% to settle at 31,462.21 points. This modest increase indicates steady investor confidence in blue-chip stocks.
Meanwhile, the Shariah-compliant EGX33 slipped slightly by 0.04%, closing at 3,231.64 points. This dip may suggest cautious sentiment among investors adhering to Islamic finance principles. In contrast, the EGX70, which represents small and medium-sized enterprises, rose significantly by 0.97% to 8,407.39 points, showcasing the growing interest in Egypt’s dynamic SME sector.
Additionally, the broader EGX100 climbed by 0.74% to 11,667.71 points, signaling overall market growth and mounting investor engagement.
The The week’s trading concluded with a total market capitalization of approximately 2.28 trillion Egyptian pounds. Arab and non-Arab foreign investors were net buyers, injecting 1.87 billion and 2.03 billion Egyptian pounds into the market, respectively. This influx contrasts with Egyptian investors, who were net sellers, offloading shares worth 3.91 billion Egyptian pounds.
Among the top gainers, Samad Misr – EGYFERT (SMFR.CA) led the charge with a 20% surge, closing at 78.00 Egyptian pounds per share. Arab Valves Company (ARVA.CA) followed closely with a 19.49% increase, reaching 3.74 Egyptian pounds per share. Additionally, Cairo Poultry (POUL.CA) saw a 9.71% boost, trading at 15.25 Egyptian pounds per share.
Conversely, the session’s biggest decliners included Alexandria New Medical Center (AMES.CA), which dropped by 4.94% to 21.74 Egyptian pounds per share, and Golden Coast Company (GOCO.CA), which fell by 4.72% to 1.01 Egyptian pounds per share. Nozha International Hospital (NINH.CA) also saw a decline, sliding 4.71% to 8.29 Egyptian pounds per share.
Amidst this backdrop, The United Bank is poised to make a significant impact with its forthcoming initial public offering (IPO) on the EGX. The bank has announced an indicative price range of LE 12.70 to LE 15.60 per share, potentially raising between LE 4.2 billion and LE 5.1 billion. This IPO represents 30% of the bank’s equity, with plans to offer 330 million shares.
Notably, The United Bank aims to allocate 95% of the shares to institutional investors, reflecting a strategic move to attract substantial investment from key market players. The remaining 5% of shares will be available to individual investors, fostering broader public participation.
The IPO is set to proceed before the end of 2024, with trading expected to commence earlier than initially projected. This timeline highlights the bank’s commitment to expanding its market presence and aligns with its strategic growth objectives.
CI Capital, the IPO’s manager, is spearheading a promotional campaign targeting investors across major financial hubs, including Saudi Arabia, Dubai, London, and South Africa. This initiative underscores Egypt’s position as a compelling investment destination, appealing to a diverse range of stakeholders.
