FRA amends EGX’s listing regulations📑

Daily Markets Summary

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What’s Clapping Today👏: FRA amends EGX’s listing regulations. MNT-Halan raises $120 million in funding. Inflation rose to 5.7% in August. And DoorDash, UberEats, & others sue New York City over restaurants’ price cap. 

Local Pickup🌇

FRA amends EGX’s listing regulations📋

FRA officials have agreed to amend some of the rules for listing securities on the EGX. The decision comes in preparation for receiving major proposals for a number of companies with high liquidity and huge assets that the EGX is expected to witness in the coming period.

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Who is affected🤷: FRA chairman Dr. Mohamed Omran said that companies looking to go public will have to offer at least 1% of the EGX’s total free-float market cap, instead of a minimum number of the company’s total shares. Companies will also be required to have a free-float market cap of at least 0.5% of the EGX’s total free-float market cap. Dr. Omran said that the two previous standards created an especially costly process for companies whose capital exceeded tens of billions of EGP. A factor that led to several cases of companies’ reluctance to move forwards with the listing process in the past.    

Why is this important🤔: Dr. Omran said that the Egyptian state had announced in the middle of last month its plan to offer the New Administrative Capital Company on the EGX during the next two years. A listing that potentially doubles the value of market capital, contributes to attracting new investors & creates a state of great recovery for the EGX.

MNT-Halan secures $120 million from global & regional investors📱

MNT-Halan, a platform that connects consumers, vendors and micro-enterprises through a digital platform and payment solutions, has raised $120 million! The funding round was led by global & regional investors such as Apis Growth Fund, Lorax Capital Partners, & DisrupTech, to name a few.

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What does MNT-Halan do, exactly🤷: Well, a little bit of everything. MNT-Halan was Egypt’s first private non-bank company to be licensed by the Central Bank of Egypt (CBE) to operate a digital wallet, which has allowed it to provide a variety of services. The platform’s services include e-wallets, e-payments, e-commerce services, installment sales services, & digital financing for individuals and merchants. Halan is committed to providing smooth financial services to unbanked customers in Egypt and the surrounding region. No wonder it’s nicknamed the “super app”.

Why is this important🤔: More than 70% of Egypt’s young and fast-growing population is financially underserved, despite mobile penetration exceeding 90%. MNT-Halan has more than four million customers in Egypt, of which one million are monthly active users, and has disbursed more than $1.7 billion in loans. The investments signal significant interest and commitment from investors to the fintech scene in Egypt. The company plans to use the funds to serve tens of millions of customers, enhance technology & product development innovation, and expand cross-border. (Reuters)

Annual inflation rate rises to 5.7%🐡

The annual inflation rate in Egypt increased to 5.7% in August 2021 from 5.4% in the previous month.

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Who is affected🤷: Prices for food & beverages (F&B) rose 7.6% mainly as a result of a 17.9% increase in oils & fats prices. Vegetable prices also had a major impact on the prices for F&B as they increased 13.8%. Tobacco & alcoholic beverages saw a relatively slighter increase by 2.3%. Housing & utilities prices rose 4.4% in August 2021 on the back of increased fuel & electricity prices at the start of July. 

Why is this important🤔: August’s inflation rate is the highest since November 2020, due to a significant rise in prices of food (6.6% vs 4.9% in July), of which oils and vegetables. Still, the inflation rate remains well within the CBE’s target range of 5-9%. In 2021, inflation in Egypt was at its lowest in April, when it recorded a 4.1% rate. Inflation is sure to be on the minds of CBE officials as they meet this Thursday to discuss interest rates. (CAPMAS)

More Headlines📰

  • Rowad Tourism considers developing part of Red Sea land portfolio
  • EBRD studies €250 million sovereign loan to upgrade Egypt’s Cairo Metro line 2
  • Egypt plans to resume stalled state-run IPO program by year-end
  • CIBC leads brokerage ranking in August 2021 with an 18.7% market share
  • Stillfront acquires UAE’s Jawaker for $205 million

Global Pickup🌎

DoorDash, UberEats & others sue NYC over restaurant fee limits🛵

Some of the U.S.’ largest food delivery companies are suing New York City over a limit on fees it put in place during the pandemic to protect restaurants whose businesses were harmed by the forced closure of their dining rooms.

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Who is affected🤷: NYC put a temporary cap on delivery fees last June to help restaurants stay in business while in-person dining was closed due to pandemic restrictions. The platforms can’t charge restaurants more than 23% per order, broken down as 15% for delivery, 5% for having the restaurant listed on its app, and 3% for credit card processing feeds.

Why is this important🤔: New York City has continued to extend those caps even as vaccinations allow more indoor dining which, according to the companies, cost them millions of dollars over the summer. The companies claimed that they were “instrumental in keeping restaurants afloat and food industry workers employed”, and described the law as government overreach. 

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