Pre-Trading Thoughts

Al Ahly Pharos

Kuwait’s Bukhamseen Group is planning to acquire one of Egypt’s largest tourism and hospitality investment companies in a USD4.9 billion transaction, Al Mal reports without disclosing the identity of the sought after company.

The government is in talks to temporarily use Cyprus’ floating storage and regasification unit Etyfa Prometheus, according to industry publication Mees.

Suez Canal Authority head Osama Rabie went on a campaign to persuade shipping lines to return to the Canal, telling representatives of 23 leading companies in the field that “the current conditions in the Red Sea region are witnessing many positive indicators towards the start of stability returning to the region,” according to an authority statement.

The European Central Bank lowered interest rates by 25 bps to 2.75% at the end of last week as it pivots from fighting inflation to tackling sluggish growth, it said in a statement.

RMBV (RMBV Private Equity), based in the Netherlands, plans to invest USD100 million in the Egyptian market in 2025.

The Suez Canal Economic Zone achieved a 32% YoY growth in its revenues during 1H FY2024/25, recording about EGP5.6 billion, compared to EGP4.3 billion during the same period of the previous fiscal year, and an increase of 8% over the budget expectations.

The CBE plans to issue USD1 billion worth of one-year dollar T-bills during the current week, in line with the maturity of USD1.06 billion worth of T-bills, at yield of 5.1%.

The Senate will discuss today proposed legislative amendments to the Capital Market Law, aiming to enhance the investment climate and attract foreign investments.

CIRA reported solid 1Q24/25 financial results, where net income came in at EGP178 million in 1Q24/25 with NPM of 18%, compared to net income of EGP107 million in 1Q23/24 with NPM of 12% and net loss of EGP374 million in 4Q23/24. CIRA is currently trading at FY24/25f P/E of 50.2x and EV/EBITDA of 8.5x.

HELI received the 766 feddan land plot in Capital Gardens in East Cairo. The value of the land plot amounts to EGP12.1 billion, with HELI having paid the down payment and secured an installment schedule for the remaining amount over eight years.

EGTS’s court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 4 February 2025.

El Attal Holding intends to go public in 2025, with the developer planning to list around 28% of its shares on the EGX in 3Q25.

An unnamed Emirati company has submitted an offer to acquire a controlling stake in indebted Building Materials Industry Company (BMIC) in exchange for settling its EGP4 billion in outstanding debts, according to local media.

State-owned Assiut Oil Refining Company (ASORC) has broken ground on its EGP550 million, 10 MW solar power project, according to an Oil Ministry statement.

The FRA approved the capital increase decision of ATLC, increasing authorized capital from EGP1 billion to EGP4 billion and increasing issued and paid-up capital from EGP558.67 million to EGP1 billion; the increase is distributed over 176.53 million shares with a nominal value of EGP 2.5 per share.

ETRS and Saudi Arabia launched a new shipping company — Egytrans Arabia —that will serve as a central hub for delivering logistics services and strengthening industry partnerships.

The UAE’s Burjeel Holdings will establish a bone marrow transplant unit in Egypt under an MoU signed with the Health Ministry. The project will be led by Burjeel Medical City and supported by Burjeel Cancer Institute.

Hilton opened the 255-room Hilton Cairo Nile Maadi overlooking the Nile.