Abu Qir Completes Sale of Secondary Stake✔
The secondary stake sale of 126.2 million shares (~10%) of Abu Qir’s (ABUK) capital was executed on Thursday, in a transaction worth approximately EGP 2.24 billion.
More details🧐 Selling shareholders include the National Investment Bank (NIB), the Industrial Development Authority (IDA), Al Ahly Capital Holding, & the Chemical Industries Holding Company. 100% of the offering went to non-retail investors.
Why is this important🤔 The offering, which was priced at EGP 17.8/share, is the second offering in the state’s privatization program, following E-Finance’s IPO in October of this year. ABUK closed 20% up at EGP 22.11/share in Thursday’s trading session.
Annual Inflation Decreased More Than 1% in November🔻
Egypt’s annual urban inflation dropped to 6.2% in November, down from 7.3% in October, thanks to a drop in vegetable prices. The consumer price index stood at 118 points in November, the same as October, as a result of increasing & decreasing prices offsetting each other.
CPI vs Inflation🤷♀️ CPI is a measure related to the consumer’s daily expenses. It’s also referred to as the cost of living index. Inflation is an increase of the price of goods & services in general terms. Although the CPI is a crucial component in measuring inflation, it’s not the only one.
What increased🆙 Prices of oils & fats rose by 13.7%, cereal & bread prices by 3.2%, & dairy product prices by 1.0%.
What decreased🔽 Vegetable prices decreased by 11.0%, fruit prices by 5.1%, & meat & poultry prices by 3.4%.
Why is this important🤔 The inflation rate remains well within the CBE’s target range of 5-9% for 2021.
Oriental Weavers Explores Selling or Liquidating its China Facility🏭
Oriental Weavers (ORWE) board of directors (BoD) has asked the company’s executive management to explore either selling or liquidating its company in China.
More on ORWE China🏭 ORWE China was established in 2006 in response to the growing demand for woven products in China and other East Asian countries.
- ORWE China’s revenues make up 0.2% of ORWE’s total revenues
- ORWE China’s shareholders’ equity make up 0.1% of ORWE’s total shareholders equity
- ORWE China’s assets make up 0.6% of ORWE’s total assets
Why is this important🤔 ORWE China’s contribution to ORWE’s business & financials is minuscule. Therefore selling/liquidating the group’s China facility is not expected to have a significant effect on ORWE’s financial results.
Headlines We’re Watching👀
- The Optional Purchase Offer for Cleopatra Hospitals Has Been Approved by the FRA
Apple is on its Way to Become the First $3 Trillion Company🍏
After becoming the first U.S. company to reach a $2 trillion market value back in August 2020, Apple is edging closer to hitting the $3 trillion mark.
More details🧐 Apple’s stock closed 2.80% up at $179.45/share on Friday, giving it a market cap of $2.94 trillion. The company will hit a $3 trillion market value if its shares trade at $182.85/share. Yeah, they’re that close.
Why is this important🤔 The U.S. is approaching the holiday season, which is likely to boost the company’s quarterly earnings. They’re also entering the “Santa Claus Rally”, which is known as the stock market’s historical tendency to rally over the last two weeks of December & into the new year.
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