Good morning, everyone. We have a brisk issue for you today to close out one very busy week. AT THE BOURSE- Act Financial shares rose 29.7% on their first day of trading on the EGX yesterday to close at EGP 3.76 — up from their initial price of EGP 2.90, according to market data.Remember: Act Financial last week completed the first IPO Egypt has seen in a year, offering some 32% of the company — 360 mn shares — to investors. The retail tranche of the IPO was 54.8x covered, while the institutional tranche was 20.2x oversubscribed, the highest demand a subscription period has seen in six years. All in all, the combined offering was 26x oversubscribed, the company said (pdf). What’s next? Act Financial plans to use the EGP 1 bn raised from its IPO to invest into three EGX-listed companies this year, Managing Partner Mostafa Abdel Aziz told Enterprise last month. The company is also exploring potential investments in six non-listed local companies with the hopes of eventually listing them on the EGX. AND- An index just for temporarily listed companies? The bourse is considering launching an index for companies that are temporarily listed on the EGX, bourse head Ahmed El Sheikh told Al Arabiya, adding that the move will help keep things organized with all the temporarily listed companies filed in one list. The index will categorize companies based on the sectors they operate in and will include information about their capital. Another IPO incoming? El Sheikh expects 2-3 companies to temporarily list on the EGX this year — the bourse is currently studying the prospect of listing 11 new companies — eight on the EGX and three on the NileX.WATCH THIS SPACE- Metro fare just got pricer: The state is hiking metro ticket prices by up to 33% starting today, Al Shorouk reports, citing a source from the Cairo Metro. Tickets now run between EGP 8-20 depending on how far your destination is. The hike comes in response to the government’s decision to raise fuel prices by 10-15%. Train tickets are also getting more expensive, rising up to 25% starting today — the Talgo first-class ticket now goes for EGP 275, while the second-class ticket is now priced at EGP 175, Al Shorouk reported, citing a source from the National Railway Authority. Do you want to attend our 2024 Enterprise Finance Forum on 24 September? Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders. Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth that the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in our country and the wider region. Among the questions we’ll be asking:What’s Egypt’s role in the regional industry? What are foreign investors looking for right now? Is real estate the only asset class in Egypt?What does the next generation of leaders think as they take over established family businesses?Do you want to request an invitation? Tap or click the image above. NEWS TRIGGERS- It’s the first week of August — here are the key news triggers to keep your eyes on this month:Non-oil private sector back in growth territory? S&P Global will publish Egypt’s PMI figures for July on 5 August, measuring the country’s non-oil private sector activity. Last month saw business activity pick up to its highest level in three years and policymakers will be eagerly waiting to see if the sector has finally started growing in July after 43 straight months of contraction.Inflation to cool for the fifth consecutive month? Capmas and the CBE are expected to publish July’s inflation data early on in the month. Data for June showed inflation falling to its lowest level in 17 months, but some analysts worry that electricity, fuel, meds,and fertilizer price hikes over the coming months could put at risk our disinflationary trajectory. Foreign reserves: The CBE is expected to release July’s foreign reserves figures within the coming days. Reserves hit a fresh high of USD 46.4 bn in June and credit rating agency Fitch Ratings forecasts them increasing to USD 49.7 bn by the end of the current fiscal year Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here PSA- WEATHER- It’s another hot day in Cairo, with a high of 37°C and a low of 26°C, according to our favorite weather app.It’s cooler in Alexandria, with a high of 32°C and a low of 24°C.And over the weekend, expect to see a high of 37°C in the capital. ** DID YOU KNOW that we now cover Saudi Arabia and the UAE?THE BIG STORY ABROAD- The US Federal Reserve’s signal that it plans to cut interest rates in September is leading most front pages of the business press, as more earnings and escalations in regional tensions dominate others. #1- The Fed held rates steady following its two-day meeting, in line with expectations, but Chair Jerome Powell set the stage for a September rate cut, saying it is on the table if inflation continues its downward trajectory and growth remains strong. (Reuters) ALSO- Japan’s central bank hiked rates for the second time this year, in a bid to boost its currency and ease prices of imports. (CNBC) The Bank of England will meet later today, capping a big week for rate-watchers. The expectation is that it will go for a quarter-point cut to 5%. #2- Facebook parent Meta beat revenue expectations on the back of robust digital ad sales, which it said will help cover the rising costs of AI — flipping the script after Microsoft and Alphabet’s earnings and capital expenditure projections raised concerns around the commercial viability of AI. IN OTHER BUSINESS NEWS- Boeing named aerospace veteran Kelly Ortberg as its new CEO as it looks to rebound from a series of losses and high-profile scandals amid an ongoing quality crisis. (Reuters)MEANWHILE- The region is holding its breath following the killing of Hamas’ top political leader, Ismail Haniyeh, in Iran early yesterday morning, with fears that it will jeopardize ongoing ceasefire negotiations and spark retaliation from Hamas. (Reuters)OLYMPICS-We’re nearing the halfway mark of Olympics 2024, with day six of the competition seeing Simone Biles look to clinch her gold medal for the women’s all-around final; the athletics program kicks off; and four more swimming finals. Highlights from yesterday: Novak Djokovic and Carlos Alcaraz have each made it through to the quarter-finals in the men’s singles, potentially setting themselves up for a golden showdown, while Rafael Nadal is out of the competition after losing alongside Alcaraz in the men’s doubles yesterday. In swimming: The US’ Katie Ledecky brought home another gold for the 1.5k meters freestyle; while French Leon Marchand brought home two golds, putting France second to the top on the medals table. The medal standings now at the Paris Olympics:China (9 gold, 19 overall)France (8 gold, 26 overall)Japan (8 gold, 15 overall)Australia (7 gold, 16 overall)Great Britain (6 gold, 17 overall) TEAM EGYPT- Our handball team drew 26-26 against host nation France after a very strong match that could’ve seen the Pharaohs defeat the double Olympic champions. The Pharaohs held the lead after an impressive showing in the first half of the game and up until the final seconds of the match. The results mean Egypt now ranks third in Group B. Team Egypt will face Norway on Friday and Argentina on Sunday. It’s another busy day for team Egypt, among the matched you don’t want to miss are:Table tennis: Omar Assar faces Sweden’s Truls Moregard in the Men’s Singles Quarterfinal. (10:00 pm)Sailing: Aly Badawy in the men’s Dinghy (1:15 pm), and Khouloud Mansy in the women’s Dinghy (4:35 pm),Beach Volleyball: Doaa ElGobashy and Marwa Magdy face a Spanish duo. (12:00 pm)Fencing: Women’s team saber (12:50 pm)You can follow Team Egypt through this schedule or by heading over to our Paris 2024 Guide. Want to see when your favorite sport is on? Check out the official schedule here.

CIRA Educations reports higher revenues, income in 9M 2023-24: EGX-listed education services provider CIRA Education reported a 35% y-o-y increase in revenues to EGP 2.4 bn during the nine-month period ending 31 May, according to its earnings release (pdf). The company attributed this jump in revenues to higher enrollment across all three of its segments — nursery, K-12, and higher education.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)Driving the growth: Revenues from tuition, which accounted for 93% of total revenues, climbed 34% y-o-y to EGP 2.3 bn during 9M 2023-2024. This growth came on the back of higher enrollment rates following the inauguration of new faculties and the opening of two new schools — Regent British School and Futures Tech — at the beginning of the current academic year. Total revenues generated by the higher education sector rose 44% y-o-y to EGP 1.5 bn, while the K-12 segment reeled in EGP 894.2 mn in revenues, up 22% y-o-y.The company saw its adjusted net income increase by 11.1% y-o-y to EGP 392.3 mn during the nine-month period. It blamed a “significant increase” in finance costs, which rose 62% y-o-y, for its lower profit margin of 16.2% — it was down 3.4 percentage points compared to the same period last year.What they said: “As we continue to navigate the macroeconomic environment, our unwavering commitment to our growth trajectory remains steadfast. We maintain our focus on developing cutting-edge programs and forging strategic partnerships that enrich the educational experience for our students,” CEO Mohamed El Kalla said. AND- CIRA will extend an EGP 77.5 mn loan to Al Ahly CIRA to help it finish the construction of the Saxony Egypt University of Applied Sciences and Technology (SEU) after CIRA’s board approved the decision, the company said in an EGX disclosure (pdf) yesterday. Remember: Al Ahly CIRA — an education investment company set up by CIRA Education and Al Ahly Capital Holding in 2021 — last week received the greenlight from President Abdel Fattah El Sisi to commence operations at SEU. The company last month opened talks with the National Bank of Egypt to secure loans worth EGP 500-600 mn to partially fund the c. EGP 1 bn first phase of SEU.When does SEU kick off operations? The company aims to launch SEU this fall, with a spring semester start date, according to the earnings release. The company had said last week that the launch date will “depend on the completion of the required operational approvals and the completion of the first phase of construction.”ACT FINANCIAL’S TOPLINE DOUBLES IN 1H 2024-Act Financial’s net income rose 79.3% y-o-y to EGP 109.4 mn in 1H 2024, while its revenues came in at EGP 261.2 mn during the half, jumping 104.5% compared to the same period last year, according to the company’s financial statement (pdf).Remember: It has been a busy few months for Act Financial, as it gears up to make its EGX debut after wrapping up its heavily-oversubscribed IPO last week.

The retail tranche of Act Financial’s IPO was 54.8x covered, with investors subscribing to 3.3 bn shares — worth some EGP 9.5 bn — by the end of their subscription period yesterday, according to a statement (pdf) from IPO manager Zilla Capital. The IPO is the first the Egyptian market has seen since 2022, the statement read. The details: Retail investors were offered 60 mn shares of the 360 mn shares the investment management firm was offering. Some 26k subscribers participated in the retail tranche of the offering.ICYMI- The subscription period for institutional investors wrapped up last Thursday, and saw the offering 20.2x oversubscribed, the “highest oversubscription for private offerings on the EGX throughout the last 15 years.” Some 493 subscribers put in offers for 6.1 bn shares, worth some EGP 17.6 bn. Who subscribed? “A multitude of local and regional investors, including high net wealth individuals, financial institutions and strategic investors” subscribed to the offering, according to the statement. Refresher: Act Financial is offering some 32% of the company — 360 mn shares — in the first IPO the EGX has seen in a year. The shares are being offered at a price of EGP 2.90 a pop, with the company aiming to raise around EGP 1.04 bn through the offering. Managing Partner Mostafa Abdel Aziz told Enterprise earlier this month that EGP 1 bn of the offering’s proceeds will be invested into three EGX-listed companies this year.Target reached: The company raised EGP 1.04 bn from its IPO, according to the statement. What’s next? It remains unclear when exactly Act Financial’s shares will hit the EGX, but it will likely make its debut sometime next week. It’s been pretty dry for the IPO market: Last year saw only a single company make its EGX debut, with Taqa Arabia listing 1.35 bn shares on the exchange in a technical listing rather than an IPO. No company has made its EGX debut since.Advisors: Zilla Capital managed the IPO, Matouk Bassiouny & Hennawy was the company’s legal advisor, Baker Tilly provided auditing services, and Financial Advice Corporate Transactions was the independent financial advisor to the transaction. Mubasher Trade was placement agent.

Good afternoon, friends. It’s an unusually quiet news day at home as the long weekend inches closer.There are just 63 days left until our next Enterprise Finance Forum, which will take place on Tuesday, 24 September at the St Regis Hotel on the bank of the Nile here in Cairo. The nation’s finance industry is at a turning point. Less than six months after the float of the EGP, we are on the right side of a protracted FX crunch that had the business community and Planet Finance alike in a chokehold. We’re also in the early days of a generational realignment of power not just in our region, but in the global finance industry: The UAE has for more than a decade been the unquestioned epicenter of finance in the Mideast. Saudi Arabia is jockeying for a position, offering a fat fee wallet as it invests bns in gigaprojects — but institutions that don’t declare it their regional headquarters could be left on the outside looking in.Enter Egypt, where we need to ask tough questions about our role in this finance ecosystem — and about the role the industry can play in building a real, export-led economy that will be far more resilient to shocks going forward. On the agenda in September: We’ll ask a senior government official to tell us why it’s different this time around;Top CEOs answer the most difficult questions in Welcome to the Hot Seat;What does the New Middle East Economy look like, and what’s our finance community’s role in it?How is Planet Finance preparing for the largest inter-generational transfer of wealth the world has ever seen?Who are the next generation of giants who will be staples of your fee wallets and your NIMs in the future?PLUS: The outlook for dealflow, opportunities in consumer finance, how we should be thinking about energy, why customer experience is key online and off, and what’s driving the next generation of Egyptian giants.The 2024 Enterprise Finance Forum is our flagship forum and part of our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy. WHO SHOULD ATTEND? Everyone who plays a role in our industry, from commercial and investment bankers to asset managers, fintech founders, NBFS leaders, and professional services providers of all stripes. Attendees at our events are C-suite officers, business owners, and their direct reports; we also make an allocation for folks we think could be tomorrow’s founders and C-suite executives.Want to request an invitation? Tap or click here Space is strictly limited. Formal invitations will start going out next month, and the only way to receive one is to let us know you’re interested. THE BIG STORY TODAY Retail investors piled into Act Financial’s offering till the last moment: Act Financial’s retail investors’ offering was oversubscribed 55x times on the last day of the subscription period today ahead of the IPO, a company source confirmed to Enterprise. The retail investors — who are being offered 60 mn shares — booked over 3.3 bn shares. The subscription period for institutional investors wrapped up last Thursday, and saw the offering 20.2x oversubscribed.THE BIG STORY ABROADThe news cycle continues to feel like one endless Kamala Harris campaign press briefing as we bring you updates on the US presidential election as it has unfolded since we last hit your inboxes this morning. Harris clinches support of majority of DNC delegates: Harris has secured pledges of support from a majority of the delegates to the Democratic National Convention (DNC), paving the way to securing the nomination at the convention from 19-22 August. Harris to miss Netanyahu’s speech to Congress: Harris will not be attending Israeli prime minister Benjamin Netanyahu’s address to the US Congress tomorrow, though she is expected to meet with Netanyahu at some point during his visit to the US. While Harris has been characterized in recent days as more critical of Israel’s assault on Gaza, she is widely expected to maintain Biden’s foreign policy direction — including the US’s near-unconditional support for Israel.Meanwhile, Harris memes get a new — and perhaps unwelcome — lease on life as the campaign itself jumps on board in a bid to woo Gen Z voters. The AP is now out with a guide that breaks down the memes for the uninitiated. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here ** CATCH UP QUICK on the top stories from today’s EnterpriseAM:Egypt’s external debt registers record decline in May: External debt dropped to USD 153.9 bn at the end of May, down by USD 14.2 bn — or 8.43% — from its level at the end of December 2023.A new entry in the race for Gulf Capital’s stake in Middle East Glass: Parent firm MENA Glass Holding has submitted a mandatory tender offer to acquire an additional 40.8% — represented in 25.5 mn shares — in EGX-listed bottle maker Middle East Glass in a USD 57.8 mn transaction.Bonyan mulls IPO: Compass Capital subsidiary Bonyan Development is reportedly planning to offer a USD 120 mn stake in an upcoming initial public offering on the EGX by year-end.☀️ TOMORROW’S WEATHER- The heat is staying consistent with highs of 38°C and dropping to a moderate low of 28°C at night. It’s a bit cooler in Sahel and Alexandria with a high of 33°C and a low of 25°C, according to our favorite weather app.

Act Financial has a busy few months ahead: With an IPO slated to wrap by end of this month, Managing Partner Mostafa Abdel Aziz let Enterprise in on the company’s post-IPO plans during the company's subscription offering ceremony on Tuesday. Refresher: The company is offering some 32% of its shares in what will be the first IPO the EGX sees in a year. The subscription period for retail investors is set to take place between 9-23 July, while institutional investors will get a chance to subscribe between 9-18 July. Existing shareholders won’t exit any of their existing shares for the IPO, with Act deciding to instead raise the company’s capital by issuing 360 mn new shares. The new shares will be divided into 300 mn shares for institutional investors and 60 mn for retail investors. The company aims to raise around EGP 1.04 bn through the offering.POST-IPO-Act Financial eyes stakes in three EGX-listed companies: Act Financial plans use the EGP 1 bn raised from its IPO to invest into three EGX-listed companies this year, Abdel Aziz told Enterprise.Non-listed companies are also getting some love from Act: The company is also exploring potential investments in six non-listed local companies with the hopes of eventually listing them on the EGX, Abdel Aziz said, adding the company has met with over 100 non-listed companies so far. These could be some pretty big-ticket investments: Abdel Aziz explained that the investments will range from 5-30%, depending on the size of the company and Act Financial's plan for it. THE IPO-Over EGP 3 bn post-IPO market value: The capital increase for the offering will put the company’s market value at some EGP 3.4 bn from EGP 2.2 bn, Abdel Aziz said during the conference. To help reel investors in: The company will step in and buy back 10% of its shares if shares drop below the offer price of 2.90 EGP, he said. Off to a good start: Zilla Capital — IPO manager — Moustafa El Shenety said that the offering has already received a lot of interest from investors. El Shenety believes that Egypt could soon see the return of IPO activity thanks to exchange rate stability and the political climate.2023 was a dry year for the IPO market: Last year saw only a single company make its EGX debut, Taqa Arabia started trading on the EGX in July 2023 — in a technical listing, not an IPO — listing 1.35 bn shares on the exchange. No company has made its EGX debut since. MORE FUNDS IN THE PIPELINE-Act is looking to secure more financing: Act Financial is currently in negotiations to secure EGP 2 bn in loans, Abdel Aziz told Enterprise, without naming the other parties involved.

Good afternoon, friends, and welcome back to the grind after a long weekend. We hope you had a restful break.THE BIG STORY TODAY- Act Financial is kicking off its IPO procedures tomorrow in an event held alongside IPO manager Zilla Capital, the investment management firm said in an announcement seen by Enterprise.Remember: The company is offering some 32% of the company’s shares following a capital increase, with the subscription period for retail investors set to take place between 9-23 July, while institutional investors will get a chance to subscribe between 9-18 July.The company has set the final IPO price at EGP 2.90 per share, it said in a statement (pdf). Financial Advice Corporate Transactions (FACT) — the independent financial advisor to the transaction — set the fair value price at EGP 3.63 per share, down from the EGP 4.54 previously set as the fair value price, the statement read. THE BIG STORY ABROADFrench centrist and left-wing parties may band together to stop Le Pen’s rise to power. President Emmanuel Macron’s centrist Renaissance party and the left-wing New Popular Front are considering narrowing down their candidate pools to stifle far-right competition led by Marine Le Pen. The first round of voting wrapped up yesterday, showing Le Pen’s National Rally leading with 33.2%, followed by the New Popular Front and Renaissance parties with 28% and 20.8%. The final round of voting will take place on Sunday, 7 July. (Bloomberg) Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here ** CATCH UP QUICK on the top stories from today’s EnterpriseAM:A flurry of fresh agreements with our EU partners: European firms inked a whole lot of agreements with their Egyptian counterparts during the two-day Egypt-EU Investment Conference that wrapped up yesterday.We’re getting EUR 1 bn from the EU before the end of the year: Egypt and the EU inked an agreement that will disperse EUR 1 bn in macro-financial assistance during the second half of 2024 — the first of two packages of concessional loans that will total some EUR 5 bn.Egypt’s net foreign assets recorded their first surplus in over two years, as the second and final tranche of the USD 35 bn Ras El Hekma agreement brought in some USD 14 bn of fresh inflows — USD 6 bn of which the central bank poured into the nation’s banking sector.☀️ TOMORROW’S WEATHER- Another hot day with a high of 37°C and a low of 24°C in Cairo according to our favorite weather app.

Act Financial's IPO goes live next month: Investment management firm Act Financial will proceed with its long-awaited IPO on the EGX in July, offering some 32% of the company’s shares following a capital increase, according to the IPO prospectus published on the EGX yesterday. The subscription period for retail investors will take place between 9-23 July and institutional investors will get a chance to subscribe between 9-18 July.The breakdown: The current shareholders won’t exit any of its existing shares for the IPO, but will instead increase the company’s capital to EGP 281.4 mn, up from EGP 191.4 bn, by issuing 360 mn new shares, on top of the company’s current 765.7 mn shares. The new shares will be divided into 300 mn shares for institutional investors and 60 mn for retail investors. The company aims to raise around EGP 1.04 bn through the offering.Act thinks it has got an offer that will tempt many investors: The company has set the IPO price at EGP 2.90 a piece, a 36% markdown from the fair value price set at EGP 4.54 per share. The sizable markdown from the fair value was due to an extra 20% reduction that the company decided to throw in to “encourage the market” to pile into the offering, since the IPO market in Egypt hasn’t seen offerings for a while now, Managing Partner Mostafa Abdel Aziz told Al Arabiya Business in an interview (watch, runtime: 6:30).Where’s the money going? The offering’s entire proceeds will be used to acquire “significant minorities in listed companies,” said Abdel Aziz.It’s all about the timing: Since the local market hasn’t seen much IPO activity for a while now, traders and investors are laying in wait to jump on promising prospects, Abdel Aziz said. The offering is expected to perform strongly and “we’re looking to set a successful example with this offering,” Abdel Aziz added.Remember: We first caught wind of Act’s IPO plans back in 2022, when Abdel Aziz told us that the investment firm is aiming to offer up to a 40% stake on the EGX in early 2023.Advisors: Zilla Capital will manage the IPO, Matouk Bassiouny & Hennawy will act as the company’s legal advisor, Baker Tilly will provide auditing services, and Financial Advice Corporate Transactions will be the independent financial advisor to the transaction.

More details on Act Financial’s upcoming IPO: Investment management firm Act Financial wants to either acquire or merge with another entity to create “a big financial entity,” after going public, CEO Bassem Azab told Asharq Business. A number of Saudi and Emirati investors have already expressed interest in taking part in the transaction, he added. The company will list up to 30% of the company and bring in around EGP 1 bn when it goes ahead with its long-awaited initial public offering on the EGX within months, Azab added.ICYMI: The firm has secured regulatory approval for its IPO on the EGX earlier this week, and expects to start trading its shares within two months, with 75% of the offering set aside for institutional investors and the rest for retail investors. It will raise the whole amount through a capital increase, without the exit of any existing shareholders.The advisors: Investment bank Zilla Capital and law firm Matouk Bassiouny have been tapped as consultants on the transaction.

Act Financial gets the green light to list on the EGX: Investment management firm Act Financial is closing in on its long-awaited initial public offering on the EGX and expects to start trading its shares within two months, after obtaining approval from the EGX, according to a statement (pdf) from the company yesterday. What stake size are we talking? The company will be out with details of the upcoming IPO as soon as it works to finalize listing on the EGX in 2Q 2024.No exit: Act Financial aims to raise the whole amount through a capital increase, without the exit of any existing shareholders, the statement added.Where the fresh funds will go: Of the proceeds — which are expected to reach EGP 1 bn, according to unconfirmed media reports last month — 75% will go into acquiring stakes in EGX-listed companies, while 20% will finance the registration of new SMEs on the bourse, Al Mal reports, citing what it says are sources in the know. The remaining 5% will go into restarting its subsidiaries in securities trading and asset management.Retail investors will get 25% of the offering, while institutional investors will get 75%, the sources added to Al Mal. What they said: “This has been our vision and dream since starting Act almost a decade ago in 2015,” said CEO Bassem Azab. “The IPO will not only mark a new chapter in our journey but also provide us with the necessary resources to capitalize on our pipeline of opportunities. This will allow us to grow and expand, further solidifying our position as a key player in the investment scene.”The advisors: Investment bank Zilla Capital and law firm Matouk Bassiouny have been tapped as consultants on the transaction.Remember: We first caught wind of Act’s IPO plans back in 2022, when Managing Partner and Co-Founder Mostafa Abdel Aziz told us that the investment firm is aiming to offer up to a 40% stake on the EGX.

Act Financial eyes EGP 1 bn IPO: Investment management firm Act Financial plans to offer a minority stake worth EGP 1 bn through a capital increase in its long-awaited EGX debut, Al Borsa reports, citing unnamed sources. The company reportedly filed a temporary listing request with the EGX yesterday and is awaiting the listing committee’s approval.No exit: Act Financial reportedly aims to raise the whole amount through a capital increase, without the exit of any existing shareholders.Exact stake TBD: The exact size of the stake to be offered will be determined once Fact — the independent financial advisor on the transaction — concludes its studies within days.Remember: Local media reported earlier this week that Act Financial is working to launch an IPO on the EGX in 2Q 2024. We first heard of the plan in September 2022, when Managing Partner and Co-Founder Mostafa Abdel Aziz told us that the company would offer a stake of up to 40% on the EGX by early 2023.Advisors: Investment bank Zilla Capital and law firm Matouk Bassiouny have been tapped as consultants on the transaction, according to the sources.

Act Financial’s long-awaited IPO approaching? Investment management firm Act Financial is working to IPO on the EGX in 2Q 2024, Al Mal reports, citing sources it says have knowledge of the matter. The company reportedly filed a request with the relevant regulatory authorities days ago. It is currently in talks with a number of investment banks over the management of the IPO and is poised to select a consultant within days.Remember: Act Financial had initially planned to offer up to a 40% stake on the EGX by early 2023, Managing Partner and Co-Founder Mostafa Abdel Aziz told Enterprise back in September 2022.Transaction size TBD: The company is still looking into the exact size of the stake to put up for grabs. The transaction value, which will depend on the targeted capital increase, will reportedly be “large”.All part of an ambitious expansion plan: Last time we spoke with Abdel Aziz, he said that Act Financial also had plans to acquire 5-20% in some EGX-listed companies, diversify its investments across various sectors, and launch SME and real estate investment funds with initial capital of EGP 1 bn and EGP 2 bn.2023 was a dry year for the IPO market: Last year saw a single company make its EGX debut, Taqa Arabia started trading on the EGX in July 2023 — in a technical listing, not an IPO — listing 1.35 bn shares on the exchange.But we’re expecting a couple of IPOs this year: The developer of the new administrative capital Administrative Capital for Urban Development is set to be ready for listing by 2Q 2024 and aims to raise over EGP 150 bn from listing 5-10% of its shares in one of the EGX’s largest ever transactions. Meanwhile, Raya Holding plans to offer 30-35% of its IT arm Raya Information Technology on the EGX in 1H 2024.

Act Financial aims to offer up to a 40% stake on the EGX by early 2023, Managing Partner and Co-Founder Mostafa Abdel Aziz tells Enterprise.Financial advisors TBA: Act Financial has appointed Matouk Bassiouny & Hennawy as its legal counsel and is still in talks with financial advisors for the offering, Abdel Aziz said.2023 is looking better than 2022 right now: Several companies have postponed plans to debut on the EGX this year due to market volatility. Banque du Caire and Aman said in July they had pressed pause on their IPOs in July and will wait until conditions improve before moving forward with share sales.Acquisition plans: Act Financial intends to increase its stakes in listed companies to between 5% and 20% and diversify its investments across various sectors. It will increase its direct investment and co-investment portfolio threefold from EGP 1.5 bn to EGP 4-4.5 bn by 2024, by increasing current stakes and working with Gulf investors on new buys, Abdel Aziz said. Act Financial currently owns stakes in four EGX-listed companies in the industrial and pharma sectors, and targets holdings of 5-20% in listed firms, he added.SME and real estate funds in the pipeline: Act Financial is planning to launch an SME fund with an initial capital of EGP 1 bn, Abdel Aziz said. The fund will focus on food, logistics, and healthcare firms in the short term, before branching out to other sectors. A real estate investment fund will follow at a later stage with an initial capital of EGP 2 bn, he added.Act was heavily in the news in the second half of 2020 and into 2021 as it bought deep into SODIC, exiting when Aldar and ADQ acquired the upmarket realtor.

Evolve Investment Holding plans to launch a gold-backed investment fund that will invest in precious metals, CEO Sameh El Torgoman told Al Mal in an interview (watch, runtime: 1:16:48). The fund will be set up with EGP 500 mn in initial capital and is geared towards investors who want to trade in gold through gold-backed securities that track its price. The company is in talks with three financial institutions over their potential participation in the fund.Gold-backed fund? Exchange-traded gold-backed funds are regulated financial products, where each share corresponds to a specific amount of gold. Think of it as a way of getting exposure to gold without having to buy physical bars. The share price reflects the underlying gold price. The World Gold Council has lots more if you want to dive deeper.About Evolve: The company, which opened its doors this year, plans to launch multiple precious-metals-focused funds. Evolve’s physical gold-trading arm, Gold Net Trading, began operations in October 2019. Torgoman says he holds a 51% stake in the company, while eight other “well-known” investors hold the rest, according to Al Mal.This is all pending application for regulatory approval, El Torgoman said. There have as yet been no official proposals submitted to establish gold funds in Egypt, Al Arabiya reported Financial Regulatory Authority (FRA) head Mohamed Omran as saying last week.Evolve isn’t the first company to tap the gold market: Banque Misr also announced plans to launch a gold investment fund last year.

Happy Sunday, friends, and welcome to a somewhat busy start to this (potentially) abridged workweek.THE BIG STORIES TODAY- #1- The Financial Regulatory Authority (FRA) has given Macro Group the green light to publish the public subscription notice for its upcoming IPO, according to an FRA statement (pdf). The approval comes after the bourse listing committee signed off on Macro listing its shares on the EGX earlier this month. The group will sell up to 264.51 mn shares — or 45.8% of the company’s capital — at a maximum price of EGP 6.05 per share.#2- Evolve Investment Holding plans to launch a EGP 500 mn gold-backed investment fund that will invest in precious metals, CEO Sameh El Torgoman tells Al Mal. The fund is geared towards investors who want to trade in gold through gold-backed securities that track its price. The company is in talks with three financial institutions for their participation in the fund. Enterprise is reaching out to the company for confirmation and further details.^^ We’ll have more on these stories in tomorrow’s edition of EnterpriseAM.HAPPENING NOW- It’s a busy afternoon for the House of Representatives, with just about every committee getting through a stacked agenda. Among the most noteworthy bills and topics being taken up:The new Ins. Act is up for discussion in a joint legislative and constitutional, planning and budgeting, and SMEs committee. The bill, which the Financial Regulatory Authority began drafting in 2018, would make the FRA the primary regulator for the sector. Last we heard, FRA boss Mohamed Omran said the new law could see the light by mid-2022.Meanwhile, tuk-tuks appear to have a guardian angel in the House Industrial Committee, where an MP filed a discussion request to continue importing tuk-tuk components. The request comes after Trade Minister Nevine Gamea issued a decision late last year halting these imports, marking one of the few decisive steps the government has taken in its yearslong fight against the three-wheelers.** CATCH UP QUICK on the top stories from today’s EnterpriseAM: The Enterprise Reader Survey says: 2021 was a very good year, with three quarters of you saying that last year was a good year to do business here — and optimism is the prevailing sentiment as we push ahead with 2022.Fawry eyes capital increase, US listing: EGX-listed e-payments giant Fawry has received approval from its board of directors to create an American depositary shares program, which would allow the company to list shares in the US.Raft of cooperation agreements with Korea: Egypt and Korea will conduct a joint feasibility study of a bilateral trade liberalization agreement after the two countries’ presidents agreed on the move last week. Korea will also provide us with soft loans worth USD 1 bn over the next five years, as well as a USD 251.6 mn development finance agreement that aims to upgrade the signaling systems for the Egypt-Luxor High Dam railway line. THE BIG STORY ABROAD- It’s (almost) all about Ukraine. The UK is picking up where it left off after accusing Russia yesterday of plotting a coup in Ukraine, with a senior UK minister today rattling the sanctions saber at Moscow if it follows through on the alleged coup, according to Reuters. Meanwhile, Bloomberg is looking at energy-starved Europe’s fate if Russia were to invade Ukraine, suggesting that Moscow would not stop the gas from flowing into the continent if a war were to break out, but serious sanctions from the West would force that scenario.Over on the business side of the news cycle, the growing expectation that the US Federal Reserve will kick off its monetary tightening program in March with the first interest rate hike since 2018 is getting ink in the Financial Times and Bloomberg. The Fed’s Open Market Committee is sitting down for its first meeting of the year this Tuesday and Wednesday.The outcome of the Fed’s meeting will be a key factor to watch here at home as the Central Bank of Egypt holds its inaugural interest rate meeting of 2022 a week later. The CBE’s Monetary Policy Committee is scheduled to meet on Thursday, 3 February. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here 🗓 CIRCLE YOUR CALENDAR-Nahr Elkhair Development and Investment’s shares will start trading on the EGX on Tuesday. The company will directly list its shares on the bourse, without offering shares to investors via subscription, according to Al Shorouk.PSA- We can probably all look forward to a four-day workweek this week as the nation takes Thursday off in observance of Police / Revolution Day, which falls on this Tuesday, 25 January. Prime Minister Moustafa Madbouly confirmed yesterday that public sector workers will take the day, though we’re yet to hear from the EGX, the Central Bank of Egypt or the Manpower Ministry.Startups have until next Sunday, 30 January to apply for the spring 2022 cycle of EGBank’s Mint Incubator. The incubator offers two tracks: A sector-agnostic track for startups at the MVP stage, and a fintech track that accepts early-stage startups both at the ideation and MVP stages. Main founders must be between 16-35 years old. You can apply here.The Cairo International Book Fair starts on Thursday at the Egypt International Exhibition Center. Members of the public will be allowed to enter without providing proof of vaccination, the Culture Ministry said last week. The two-week event runs through to 7 February.Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.☀️ TOMORROW’S WEATHER- The lowest of nighttime lows tomorrow: Expect a daytime high of 15°C tomorrow before the mercury falls to 5°C at night — the coldest night on record this winter so far, according to our favorite weather app.The entire week is set to be extremely cold and possibly rainy, warns the Egyptian Meteorological Authority.

The Aldar / ADQ takeover of SODIC is going through: SODIC shareholders have so far agreed to sell shares equivalent to a 77.26% stake (275.2 mn shares) in the company to a consortium of real estate giant Aldar Properties and Abu Dhabi sovereign wealth fund ADQ in a mandatory tender offer, CI Capital, which is advising Aldar and ADQ, confirmed to Enterprise last night.What’s next? The 10-day subscription period for the MTO ends at the end of trading today, but the Emirati consortium’s MTO is effectively in the clear after passing the 51% minimum threshold for the agreement to go through. Aldar and ADQ are looking to acquire up to 90% of SODIC, meaning shareholders in the upmarket real estate developer can still sell shares equivalent to as much as 12.7% of the company before today’s closing bell.It’s still unclear whether a group that is presently SODIC’s largest shareholder is among the sellers. A consortium of Act Financial, Hassan Allam Properties and Concrete Plus Engineering together make up SODIC’s single-largest shareholder with a 15% stake in the company. A top exec at one of the companies declined to comment.The terms of the sale: The Emirati consortium — which is 70% owned by Al Dar and 30% owned by ADQ — is paying EGP 20 per share in an all-cash transaction, valuing SODIC at around EGP 7.1 bn (USD 452 mn). The company’s board called on shareholders last month to accept the offer despite it being priced almost 20% below the EGP 23.42 share the upmarket developer’s financial advisor BDO had suggested in its fair value study.SODIC’s shares closed at EGP 19.75 each yesterday, rising from EGP 19.60 last week but remaining flat during yesterday’s trading, according to market data. The company’s shares have traded as low as EGP 14.02 and as high as EGP 19.89 in the past 52 weeks, according to Reuters data, meaning the MTO is at a premium to SODIC’s average share price in the past year.Just what the nation’s real estate industry needs? Aldar is a proven, well-capitalized player in the UAE’s hyper-competitive real estate market and will bring to the Egyptian industry a set of skills and operating playbook that we expect will see many participants up their games. The transaction is also great news for foreign direct investment, underscoring to would-be strategics that it’s possible to efficiently enter a key industry here.Background: The consortium had presented its takeover offer back in September, when it initially tabled EGP 18-19 per share, which would have valued SODIC at EGP 6.6 bn. The Financial Regulatory Authority approved the bid last month, kicking off the 10-day subscription window from 24 November.

Mostafa Abdel Aziz, managing partner and co-founder of Act Financial: Each week, my Morning / WFH Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Mostafa Abdel Aziz, managing partner and co-founder of Act Financial (LinkedIn).I’m Mostafa Abdel Aziz, and I’m one of the managing partners and co-founders of Act Financial. I was previously CEO of Beltone Brokerage and I've been working in capital markets for the past 18 years or so. There are three separate aspects to my role at Act: manager, partner and co-founder. As a co-founder there's a sense of belonging and passion for something you created; where you’ve helped to choose the name, the logo, the vision and mission for the company. The management side of things encompasses everything I do in my day to day job as an active executive. Being a partner in the company creates a sense of ownership that has been unique to my involvement with Act.We established Act back in 2014 and have been active in the market for the past 6-7 years. We marked our first investment with the joint acquisition of Beltone Financial with Orascom (Orascom Telecom Media and Technology at the time) back in 2015 where we agreed to managing the subsidiary full-time for a four-year period. Afterwards, we went back to positioning Act Financial as an investment company and decided we would remain at the holding level.We believe in an active role for investors in unlocking value. We’re not an asset manager — we actually invest our own money in target companies and invite co-investors to create strategic consortiums. Our primary interest is in enhancing a company’s shareholder structure, its vision and its direction. Although we don’t have specific criteria — in terms of sector allocations — guiding our investments, capital markets have been especially interesting to us recently. Given that the market in Egypt is underperforming global equities and even the domestic private equity market, the pandemic has given us a great chance to take good companies at a significant discount for no reason other than market inefficiency.The pandemic taught us to appreciate liquidity. Our assessment of companies and analysis of sectors has adjusted to appreciate liquidity and transaction structure over value. The pandemic has proven that things can dramatically change and get out of control pretty fast. A better liquidity position allows you to better adjust and restructure yourself according to those shocks, which is why we’re more appreciative of capital markets and stocks over private equity at this stage.We already ran a very headcount-cautious and efficient investment setup so the pandemic didn’t really change our operations. We never actually applied a strict WFH model, especially since we have separate offices where we can maintain enough social distancing. I generally don’t really like the idea of WFH at all. It changes a very fundamental portion of the work environment. Getting out of the house and brainstorming with the rest of the team is what really helps get me in the zone. I used to work on a trading floor most of my life, where instant communication was crucial. In our industry it's very important for people to communicate and interact face to face, especially with partners.Although I’m not really a morning person, I wake up at 6:30 am and make it into the office no later than 8:30 am. I start my day by reading Enterprise from bed and grab a coffee on my way to the office. From 8:30-10 am I interact with all the investment banks and continue consuming a lot of news. I’m extremely connected to the stock market, which is one of those habits you really never kick, even if you don't need to be. All that information helps me form my opinions. We scan prices when the market opens before meeting with senior staff to discuss the news and investment updates, but I always have one eye on the stock market screen at any given time. The rest of the day is usually spent brainstorming ideas for existing investments or discussing the planned pipeline of investments and typically ends at 4 or 5 pm. We all live pretty close by so we often have evening meetings or partner gatherings to continue brainstorming.I make sure to spend time with my 11-year-old son every day. We either go for a walk or just sit and chat. He’s not 11 by my standards. When I was his age I was a kid, but he’s practically a man now — it’s like he’s my friend. Before the pandemic, I used to have a very packed calendar: Each month had at least one trip, but now I have a bit more time.The secret to personal success throughout my life has been brainstorming. It's what creates everything. Talking and discussing with your close colleagues and the people outside your comfort zone is what gives light to new ideas and thinking outside of the box. It's crucial to our identity and DNA as Act.I’ve been writing in my down time over the past year and I’m almost done with a novel called Euphoria. It's a new hobby I've picked up since the pandemic started which I try to make some time for every day. It sort of happened by coincidence. I had some ideas in my head for a story and realized that there isn't much stock market literature in Egypt so I started writing this story about the stock market and how it affects your psychology. It goes into the different psychological make up of investors and how that affects their investment decisions. I really enjoyed the experience, it was completely out of my comfort zone.I've been writing way more than I've been reading these days but I guess I would recommend checking out my book when it comes out. I watch some episodes of Suits and How I Met Your Mother before I sleep, just to wind down. Suits is a nice workplace series which gives you an idea of corporate intelligence, and How I Met You Mother is just light.Staying positive is really important for getting through a crisis as a team. I think the stock market teaches you that losses are a very normal part of life. You see it so often that it neutralizes negative feelings and can help you keep a positive outlook. I've seen many crises in my career and a lot of them turned out to be great chances to change or add something new to my life. Maintaining a positive attitude is key in the world of investment.

Sodic appointed EFG Hermes to act as its financial advisor in Aldar Properties’ bid to acquire 51% of the Egyptian real estate giant, according to a regulatory filing (pdf). Sodic appears to have made the hire last week to assess the value offered by the Emirati real estate firm. Sodic’s board also approved kicking off the due diligence process from Aldar’s side as well as appointing another independent financial adviser. Aldar had previously submitted a non-binding offer to acquire at least 51% of Sodic’s shares at EGP 18-19 apiece. The offer’s midpoint price values the company at EGP 6.6 bn, and was at a 14% premium above Sodic shares’ closing price at the time the bid was made. Sodic shares closed today at EGP 16.00 apiece.Sodic’s largest shareholder appears to have an open mind and is exploring all possibilities, it said last month. The consortium of Act Financial, Hassan Allam Properties and Concrete Plus Engineering and Construction, holds a 15% stake in Sodic. Olayan Saudi Investment holds 14%, while the Abanumay family has 10% and Ripplewood 9%.IN OTHER M&A NEWS-Five Stars Flour Mills to be sold off for not paying its debts: Flour maker Five Stars Flour Mills is mulling several acquisition offers from GCC players for 100% of the company, Al Mal writes, quoting sources close to the matter. The move comes as the company had been struggling to pay off EGP 2 bn in accumulated debt since defaulting on its loans in 2016 after the EGP float.

Hassan Allam Properties has upped its stake in real estate developer Sodic to 5% from 4.91%, according to a regulatory filing (pdf). The company purchased 310k shares at EGP 15.5 per share, totalling EGP 4.8 mn. This brings the stake collectively held by Hassan Allam Properties and its CEO, Act Financial, Concrete Plus Engineering and Construction and group affiliated Tarek Mohamed Mahmoud Youssef to 14.91%. The group is now Sodic’s largest stakeholder, followed by Saudi Arabia’s Olayan Investment, which holds 13.84%. The group has been increasing its holdings in Sodic, since July.MEANWHILE- State-owned public transport company Mowasalat Misr will invest EGP 2 bn in expansion plans over the coming two years beginning in 2Q2021, while Mubasher has launched a EGP 360 mn electronic asset management platform, Du. Meanwhile, United Oil and Gas’ operations at the Abu Sennan concession are performing “strongly” and outperformed production forecasts during the second half of 2020, the company said yesterday.ALSO: Mubarak-era Information Minister Safwat El Sherif died yesterday of leukemia, his son Ihab confirmed to Youm7.

Is B Investments close to offloading part of its Total Egypt stake? B Investments denied it has reached an agreement to sell 20% of its stake in Total Egypt after local press reports yesterday claimed it had agreed to sell the shares for EGP 146.4 mn. Sources told Al Mal that the company would reduce its 7.97% stake to 6.38% without naming the buyer. In an EGX filing (pdf) B Investments denied the claims and said it was still working to finalize an agreement. B Investments earlier this year said it was looking to offload a fifth of its holdings in Total Egypt, which operates more than 230 service stations in the country and holds key agreements in fossil fuel exploration, production and trading activities. The French group’s Egypt arm is also a player in the aviation fuels market, and operates Bonjour-branded convenience stores in Egypt. In other M&A news- Act Financial-led group has more appetite for Sodic: A group of investors including Act Financial, Hassan Allam Properties, Concrete Plus Engineering and Construction has increased its combined stake in Sodic to 14%, according to a regulatory filing (pdf) yesterday. The group has been raising its holdings in Sodic since July. Concrete Plus now holds a 5% stake, Act Financial a 4.3%, and Hassan Allam Properties 3.9% (or 4.4% if we count a 0.5% stake held by its CEO), and group-affiliated Tarek Mohamed Mahmoud Youssef 0.2%. Olayan Investment holds a 13.84% stake.

M&A WATCH- Act Financial-led group adds to minority stake in Sodic: A group led by Act Financial that includes Hassan Allam Properties and Concrete Plus Engineering and Construction have increased their collective holdings in upmarket developer Sodic for the second time in recent weeks, according to a regulatory filing (pdf). The group has more than doubled its stake in the company to 11.4%, up from 5%, and could look to add to its position in the future, Al Mal reports, citing an unnamed source. Who bought what: Act Financial now holds a 4.21% stake (up from 3.2%), Hassan Allam Properties holds 3.90% (from 2.22%), Concrete Plus is at 2.71% (from 1.75%), and Mohamed Hassan Allam now holds 0.53% (up from 0.27%). The average share at which the group bought, the disclosure says, is EGP 12.95. The Act Financial-led group now appears to be Sodic’s second-largest shareholder, behind Saudi Arabia’s Olayan Investment, which holds a 13.84% stake. EFG Hermes executed the transaction on Thursday.

Upmarket real estate developer SODIC has awarded EGP 1.2 bn in contracts at its flagship SODIC East development to date since breaking ground on the project in 2018, according to a statement (pdf). More than 65% of the development’s single family homes now have a complete concrete skeleton, the statement says. Delivery is set to begin on schedule at the start of 2021 and infrastructure work is underway, SODIC boss Magued Sherif said. Sodic is positioning the community as an alternative for younger professionals seeking a “quality lifestyle” who have been priced out of the market in New Cairo. The master plan for the 655-acre development was designed by Massachusetts-based firm Sasaki. In other news of SODIC: Act Financial, Concrete Plus raise their holdings in SODIC: Act Financial has increased its stake in SODIC to 3.2% while Concrete Plus Engineering and Construction now holds 1.75% of the company and Mohamed Hassan Allam a 0.27% stake, according to Al Mal. Act Financial is itself reported to be in the process of completing a EGP 100 mn capital increase with plans to make purchases in real estate, health and logistics companies during the coming period.