ADIB Approves Doubling its Capital; Stock Falls More than 18%📉

Local Pickup🌇

ADIB Approves Doubling its Capital; Stock Falls More than 18%📉

Abu Dhabi Islamic Bank’s board of directors (BoD) has agreed to double the bank’s paid capital, from EGP 2 billion to EGP 4 billion.

More Details🧐 The EGP 2 billion capital increase will be distributed over 200 million shares at a par value of EGP 10/share.

ADIB’s BoD also agreed to sell the bank’s 50.88% stake in El Kahera El Watania Investment (KWIN). 

Why is this Important🤔 ADIB was down 18.29% at the end of yesterday’s trading session.

Are Capital Increases a Bad Sign?😬 Investors worry that when a company increases its capital, it could be a sign that the company has financial solvency issues, which is why it needs to raise additional capital. 

But that doesn’t mean capital increases are bad news. If companies manage to invest the raised funds successfully & finance additional company growth, the capital increase can ultimately be beneficial for investors. 

ADIB did not yet disclose what it plans to do with the additional capital.

Fawry’s “Fawry Accept” Sees EGP 11 Billion in Transactions in 2021💳

Fawry’s (FWRY) “Fawry Accept” service saw more than EGP 11 billion in transactions in 2021.

What is Fawry Accept💳 Fawry Accept facilitates e-payments for both companies & individuals through its points of sale (FawryPOS), as well as its online portal.

More Details🧐 FawryPOS saw around EGP 6 billion in transactions by the end of 2021, a 232% year-over-year increase. There are around 150k FawryPOS throughout Egypt.

Fawry Accept’s online portal saw almost EGP 5 billion in transactions by the end of 2021, a 400% year-over-year increase.

Why is this Important🤔 Individuals & companies alike are able to pay for numerous services through Fawry Accept, such as utility bills, school fees, charity donations, & insurance, to name a few.

Qalaa Holdings Subsidiary Plan to List on the EGX in 2023⚡

Qalaa Holdings (CCAP) subsidiary “Taqa Arabia” plans to list on the EGX in 2023.

More on Taqa Arabia⚡ Taqa Arabia is an Egyptian energy distribution company that invests, installs, & operates energy infrastructures including gas, powe, water, & petroleum.

More Details🧐 Qalaa Holdings CEO Ahmed Heikal had previously revealed plans to offer a 30% stake in Taqa Arabia on the EGX in April of 2020.

While Taqa Arabia’s CEO Pakinam Kafafi said the offering has since been postponed due to the rise of the pandemic.

Kafafi added that Taqa Arabia had hired EFG Hermes (HRHO) & HSBC as financial consultants for the offering, & that nothing has changed in that regard.

Global Pickup🌎

2022 Hasn’t Been Kind to The World’s Top 10 Richest People; Except for One👴

The world’s top 10 richest people have lost billions of dollars since 2022 started, except for Warren Buffet.

More Details🧐 The world’s richest person, Elon Musk, has seen his net worth fall by more than $50 billion, while Jeff Bezos has lost over $25 billion.

Both losses stem from the broader tech stocks’ recent tumbles, with Tesla & Amazon down 19% & 13%, respectively, year-to-date (YTD).

Google & Meta founders also saw their net worth fall sharply due to the tech stocks sell-off, with Google’s stock down more than 7% YTD & Meta’s stock down more than 10% YTD.

Why is this Important🤔 Only Warren Buffet, Berkshire Hathaway CEO, has seen his net worth rise in 2022. 

Berkshire Hathaway’s diversified portfolio of investments enabled Buffet to increase his net worth in a time when U.S. stock markets have been experiencing sharp declines, especially tech stocks. 

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