Egypt's current account gap narrows, but overall BoP records deficit    Egypt's PM reviews debt reduction strategy, eyes more private investment    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt, India discuss expanding industrial, investment partnerships    World Bank proposes Egypt join new global health initiative    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Egypt welcomes 25-nation statement urging end to Gaza war    Egypt, Senegal sign pharma MoU to unify regulatory standards    Egyptian pound ticks down in early Tuesday trading    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt, Somalia discuss closer environmental cooperation    Egypt exports 175K tons of food in one week    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Beltone to manage two IPOs in consumer, industrial sectors this year
Reducing government contributions to public companies listed on EGX will push it strongly
Published in Daily News Egypt on 28 - 01 - 2018

Beltone Financial Holding aims to complete its plans in the investment banking sector in 2018.
The company will focus on certain activities such as IPOs, mergers, and acquisition transactions in light of the high demand from foreign institutions for them.
This came due to the company's success in completing two offerings in the Egyptian market during the past year.
Chairperson of the company Mohamed El-Akhdar discussed with Daily News Egypt his expectations regarding investment prospects at Beltone Financial Holding and his outlook for the new year.
The company aims to increase its focus on the activities of the IPOs, as well as mergers and acquisitions (M&A) in light of the high rates of return offered by the Egyptian market to investors.
El-Akhdar said that the returns received by investors in Egypt cannot be compared to other markets. "This year, there will be a decline in exchange rates, which will double the return on investment, and the market is waiting for some positive news to see its impact on the indicators," said El-Akhdar.
He revealed that Beltone Financial is working on two IPOs in 2018 in both the consumer and industrial sectors, one of which is currently completing its merger procedures in preparation for launching. It is one of the top three companies in the sector through which it operates in the Egyptian market.
According to El-Akhdar, the company is working on two M&As the contracts for which are expected to be signed this month. One of the contracts would make Beltone a financial adviser to Zahran Group in the merger with the French Groupe SEB to create a new entity called Groupe SEB Egypt Zahran.
The merger is expected to take place during the second quarter of this year after obtaining the approval of regulatory bodies.
He explained that the role of Beltone in the deal includes the separation of activities and some real estate assets belonging to the Zahran Group outside the new entity, where the French Groupe SEB aims for Egypt to be its platform for expansion into the markets of the African continent and the Middle East.
According to Beltone's banking head, the opportunities in sectors of the Egyptian economy during the new year are not suitable for real estate projects, with some shares of the sector at discount rates of up to 50% of their fair values.
However, El-Akhdar said that the real estate sector will continue to attract investments because of the high demand rates in all sectors in which most companies operate.
This means that there are promising possibilities for entering new liquidity for the sector.
He added that the sectors of the Egyptian economy vary in size, performance, and saturation ratios. However, most of them are defensive sectors that offer attractive returns to foreign investors, especially after the decline in value of assets denominated in US dollars, which increased the interest of foreign and Arab investors.
According to El-Akhdar, the industrial sector is waiting for the expected cut in interest rates to shift from borrowing to working capital financing to long-term borrowing to fund capital investments, whether for maintenance or adding new production lines.
Some companies are moving to export to make use of the current exchange rates, which make competition strong for the benefit of Egyptian products, if they are of good quality.
He pointed out that the industrial sector will be a top priority for investment in the current year, to meet local demand for goods with local alternatives, both at the level of manufacturing large or smaller goods, which depends on the reduction of interest rates and hence the cost of financing.
In the opinion of El-Akhdar, shares in the medical sector are experiencing high demand from investors, because of lack of supply, in the presence of strategies of foreign investors to have shares in the sector within their portfolios.
This makes their trading higher than the multiples of the market, and benefited the shares of Cleopatra Hospital and the last offering of the company Ibn Sina Pharma.
The latest offering of Ibn Sina Pharma received became oversubscribed about 17 times on the Egyptian Exchange, raising EGP 30bn.
El-Akhdar confirmed that the strong growth of MM Group for Industry and International Trade (MTI) shares is a strong boost for foreign investors to participate in the IPO of Ibn Sina Pharma.
MTI shares rose 124% in the six months after the IPO from EGP 5.9 (the offering price) to EGP 13.24 by the end of last Thursday.


Clic here to read the story from its source.