Crédit Agricole to Increase Capital Through Bonus Shares🆓

Local Pickup🌇

Crédit Agricole to Increase Capital Through Bonus Shares🆓

Crédit Agricole Egypt (CIEB) will increase its issued capital by EGP 3.75 billion through the distribution of 939.08 million bonus shares.

How do Bonus Shares🤷‍♀️ Work Bonus shares are dividends issued in the form of free shares. Bonus shares don’t dilute shareholders’ equity, as they are issued in a constant ratio that maintains the relative equity of each shareholder’s position.

Bonus Shares vs Stock Split🤨 Both bonus shares & stock splits lead to an increase in the number of shares outstanding, resulting in a decrease in the market price per share. Bonus shares, however, do not change a stock’s par value, unlike a stock split which split the par value accordingly.

Why Bonus Shares💡 Issuing bonus shares increases the share capital of the company, making it more attractive for investors. Bonus shares are also not subject to taxation, unlike cash dividends. 

Back to CIEB’s Bonus Shares🧐 CIEB will issue 3.02 bonus shares for every original share. 

The record date, which is the last day CIEB shareholders will be eligible for the bonus shares, is December 29th, 2021. The payment date, the date when eligible CIEB shareholders will receive their bonus shares, is December 30th, 2021.

Why is this Important🤔 The capital increase means CIEB’s issued capital will stand at EGP 5 billion, compared to EGP 1.24 billion. CIEB was down 2.08% at the end of yesterday’s trading session.

Contact Financial to Open New Branches & Offer New Financing Services🏢

Contact Financial Holding (CNFN) announced the opening of new branches along with small “Mini Contact” branches, in addition to offering new financing services to the public.

More Details🧐 The company aims to add 13 new consumer finance branches this December to reach 25 “Mini Contact” branches.
CNFN’s new financing services include education financing, medical services financing, & travel & tourism financing. All of which are based upon paying for these services in installments.

Why is this Important🤔 CNFN aims to reach customers all throughout Egypt who wish to finance their purchases, whether consumer goods, cars/transport vehicles, as well as insurance services & real estate financing.

What else is Clapping👏

  • Samih Sawiris Steps Down as Orascom Development (ORHD) Chairman; Transfers Shares to His Son, Naguib Samih Sawiris

Global Pickup🌎

NFT Trader Misses Out on More Than $250,000 Due to Typo🤬

A non-fungible token (NFT) trader reportedly sold an NFT (shown below) in high demand for $3,000 rather than $300,000 due to a typo, according to CNET.

What’s an NFT🤷‍♀️ NFTs are a type of digital asset that represents ownership of a unique virtual item, such as a piece of art or rare sports trading cards. Ownership of NFTs, like cryptocurrencies such as Bitcoin & Ethereum, are linked to a blockchain. 

More Details🧐 The trader meant to list his NFT for 75 ether, equivalent to ~$300,000, but accidentally typed in 0.75 ether, equivalent to ~$3,000 as the listing price. Unlike traditional financial markets, trades made on a blockchain are nearly impossible to reverse unless the people involved in the transaction agree to do so. 

Why is this Important🤔 The NFT in question is part of the Bored Ape Yacht Club, a prestigious collection of 10,000 apes. To put things into perspective, the ~$300,000 NFT we’re talking about sits at the cheaper end of the Bored Ape Yacht Club prices spectrum.

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