Raya Holding Sells 100% of BariQ for EGP 571 Million🏢

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Local Pickup🌇

Raya Holding Sells 100% of BariQ for EGP 571 Million🏢

More details🧐 Raya intends to use the proceeds from the sale to reduce the company’s debts owed to a group of banks & thus improving its financial leverage (debt-to-equity ratio).

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What is financial leverage🤷‍♀️ Companies finance their business activities by issuing debt (bonds) and/or equity (stocks). Together they make up a company’s capital structure, a critical area that companies’ managements aim to optimize. The higher a company’s debt compared to its equity, the higher its financial leverage & risk.

Why is this important🤔 While optimal capital structures vary based on companies’ strategy & several other factors, it is usually a good sign when companies repay their debt.

Ghazl Al Mahalla Football Club Could be Next to IPO⚽

Prime Holding Company for Investment (PRMH) is preparing to execute the offering of a stake in Ghazl Al Mahalla Football Club (GMFC) on the EGX early next month.

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Who is affected🤷 Mohamed Maher, CEO of Prime Holding (PRMH), said the private placement is currently being promoted, & the offering procedures will start at the beginning of November at the latest. Maher added that the success of E-Finance’s listing on the EGX encouraged Ghazl El Mahalla’s offering, especially since the stake to be offered is not large.

More details🧐 GMFC aims to offer a stake of up to two-thirds of its shares, to increase the capital by raising EGP 135 million. Maher added that more details on the offering will be announced during the next month.

Marseilia BoD Decide to Move Shares from Nilex to EGX🔔

Marseilia Almasria Alkhalegeya for Real Estate Investment (MAAL) board of directors (BoD) agreed to proceed with transferring the company’s shares from the small & medium-sized enterprise market (Nilex) to the main market (EGX).

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Who is affected🤷 The FRA approved a request by the company to increase the authorized capital to EGP 360 million from EGP 150 million, & the paid-up capital to EGP 100.8 million from EGP 72 million back in August of this year.

What is authorized & paid-up capital🤔 Authorized capital is the maximum amount of capital a company is authorized to raise from its shareholders by issuing shares. Paid-up capital, on the other hand, is the amount of money a company has received from shareholders in exchange for shares of stock. This means that the paid-up capital can never be more than the authorized capital.

Headlines We’re Watching👀

    • Interest Rates are Coming Out Later Today, & They’re Expected to Remain Unchanged
    • Abu Dhabi Islamic Bank (ADIB) Establishes EGP 10 Million Consumer Finance Firm
    • Cleopatra Hospitals Group (CLHO) Agrees to Set Up 400-bed Hospital in New Cairo
    • EFG Hermes (HRHO) Corp-Solutions Plans EGP 1 Billion Bond Issuance Early 2022
    • Nasr Company for Civil Works (NCCW) Awarded EGP 166 Million Contract by MNHD

    Global Pickup🌎

    Elon Musk Becomes Richest Man in History After Tesla Shares Soar💰

    Tesla joined a super-exclusive club of companies that reached $1 trillion in market cap after its stock soared to an all-time high over the weekend. Company founder & CEO Elon Musk became the richest person in history along the way.

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    More details🧐 Tesla’s better-than-expected earnings report & a huge car order were behind the stock’s remarkable rally. Tesla’s Q3-2021 net income grew 439% year-over-year, & if that wasn’t enough, a 100,000 car order shortly followed from car rental firm Hertz. Tesla now stands as the sixth most valuable public company in the world, behind Apple, Microsoft, Saudi Aramco, Google’s parent company Alphabet, & Amazon.

    Why is this important🤔 The deal with Hertz is the biggest-ever rental car order for electric vehicles (EVs), & is seen as a further vote of confidence. The deal will also give Tesla vehicles more exposure, as more rentals mean more test drives.

    Earnings Call💸

    • Egyptian Chemical Industries KIMA (EGCH) incurred net losses of EGP 1.42 billion in the fiscal year 2021/2022, up by 5.1% year-on-year (Unaudited)
    • Misr Chemical Industries (MICH) reported net profits of EGP 50.15 million in Q1-2021, up by 20% year-on-year (YoY) from EGP 41.88 million, the unaudited financial results showed (Unaudited)
    • Alexandria Container and Cargo Handling (ALCN) reported net profits of EGP 336.33 million in Q1-2021, up by 21.09% year-on-year (Unaudited)

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