Banque Misr to acquire CI Capital

March 15, 2021

EGX 30: 11,290 (-0.6%) weekly change, (+4.1%) YTD
Traded Value 1W Avg: EGP 439M , (-23.8%) below 90D Avg.  
EGP:USD: 15.70 (+0.2%) weekly change

Local Pick-ups

Banque Misr will acquire 90% stake in CI Capital

CI Capital Shareholders agreed to sell their shares for EGP 4.70 to Banque misr. The tender offer, which wrapped up on Thursday, was 1.1x oversubscribed. Banque Misr will acquire 653M shares and the remaining shares will be free float on EGX. (Enterprise)

Macro Group Pharmaceuticals plans to IPO

Macro Group Pharmaceuticals, one of the fastest growing cosmeceutical companies in Egypt, announced its plan for an IPO and top list its shares on the EGX. The company is engaged in the manufacture and sale of a wide range of cosmeceutical products. The company plans to list up to 282.9M existing ordinary shares, which represents 49% of the company’s share capital. (Enterprise)

Ibn Sina Pharma to offer microfinance services to pharmacies

Ibn Sina Pharma announced it will offer microfinance services to pharmacies, in partnership with banks and financial institutions. The company’s long-term growth strategy is focused on digital transformation & introducing new innovations in the Egyptian pharmaceutical supply chain Market. (Daily News)

Other Local Headlines

  • Hikma & GSK Egypt agreed to end the potential acquisition
  • Abu Dhabi’s Aldar offers to buy a majority stake in SODIC
  • Egyptian Gulf Bank’s (EG Bank) approved dividends of EGP 477.47M for 2020
  • Inflation has increased to 4.5% in February, 2021 compared to 4.3% in January 2021

Global Pick-up

Biden signs a 1.9T USD Covid relief bill

US President Joe Biden signed a 1.9T USD coronavirus relief package. The plan will put 20B USD into covid vaccination programs and will send direct payments of up to 1,400 USD to American citizens. It will also include a 300 USD weekly unemployment insurance boost. (CNBC)

Featured Opportunity

Ibn Sina Pharma – Established in 2001, Ibnsina Pharma is Egypt’s fastest-growing and second-largest pharmaceutical distributor. The company distributes a competitive portfolio of pharmaceutical products from over 350 Egyptian and multinational companies to more than 35,000 customers including pharmacies, hospitals, retail outlets, and wholesalers.

Word of the week – Inflation

Inflation is the increase in the price of common goods and services over time. The result is a decline in purchasing power of a given currency. As inflation rises, your money can buy less.

Book of the week – The richest man in Babylon

The Richest Man in Babylon is regarded as one of the classics in personal finance. The book discusses several unchanging rules of money, like striving to improve your ability to earn and avoiding any investment that looks too good to be true and more timeless financial wisdom. (Good reads)

Earnings Call:

  • El Shams Housing & Urbanization reported Net Income EGP 149.7M in 2020, up 10% YoY.
  • MM Group reported EGP 366.5M Net Income in 2020, down 20% YoY.
  • October Pharma reported Net Income EGP 88M in 2020, up 161% YoY.