E-Finance Intends to List on Another Stock Exchange💡
E-Finance Chairman Ibrahim Sarhan said that dual listing is definitely in the company’s future plans.
What is dual listing🤷♀️ Dual listing is the listing of a company’s shares on a second exchange in addition to its primary exchange.
More details🧐 The company is exploring its dual listing options, which it plans to pursue as soon as requirements of dual-listing are met. Major requirements include a minimum company value, & reaching & maintaining a certain level of growth multiples.
The same three investment banks that were responsible for E-Finance’s IPO, Renaissance Capital, CI Capital (CICH), & Al Ahly Pharos, are in charge of the company’s dual listing venture.
Why is this important🤔 Dual listing allows a company to increase its access to capital & makes its shares more liquid. It also allows for its shares to trade for longer periods if the second exchange is in a different time zone to the primary exchange.
However, dual listing is only worth it when its benefits outweigh its costs, which include listing expenses, additional legal & financial resources, & extra attention from management.
Orascom Construction Board of Directors Recommends Acquiring Equipment Distribution Company💰
Orascom Construction (ORAS) board of directors (BoD) recommended acquiring an equipment importation, distribution, & services company for $35 million.
More details🧐 The target company was founded by Onsi Sawiris, & is owned by the Sawiris family. It manages the import, distribution & maintenance of equipment for more than 45 companies. It is made up of three separate entities, Orascom Trading, Orascom Free Zone, & National Equipment Company.
Why is this important🤔 This acquisition would allow Orascom Construction to expand in the services sector, & grow its non-engineering, procurement, & construction business. The vote will take place in the Extraordinary General Assembly (EGM) meeting held on December 27, 2021.
Companies Under Liquidation to Trade on Sunday & Wednesday Only🪕
FRA Chairman Mohamed Omran said that companies under liquidation (cc: IRON) will only be available for trading on Sundays & Wednesdays.
More details🧐 The decision comes in light of Egyptian Iron & Steel’s (IRON) stock price surging more than 111% during November, resulting in the cancellation of recent trades on the stock.
Why is this important🤔 The FRA had said that it would look into the rules governing both the mandatory delisting of companies & trading of companies under liquidation following the surge in IRON’s stock price. The decision to trade twice a week addresses the latter.
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Didi, the “Uber” of China, Plans to Delist from New York Stock Exchange🚗
Didi, China’s version of Uber, saw its shares plunge more than 22% after it announced it would delist its shares from the New York Stock Exchange (NYSE).
More on Didi🤔 Didi’s listing was just six months ago, as it raised $4.4 billion in a highly anticipated IPO on the NYSE back in June 2021. Within days of the IPO Beijing announced a crackdown on technology companies listing overseas, leading to its removal from the app store & sending its stock into a downward trend that it never rebounded from.
More details🧐 Earlier on Thursday the U.S market revealed tough new rules for Chinese firms that list in the U.S. Didi announced it would delist the following day. “Following careful research, the company will immediately start delisting on the NYSE & start preparations for listing in Hong Kong.”
Why is this important🤔 Chinese technology companies have been under scrutiny at home & abroad. But Didi’s decision was immediate, sending strong signals that Chinese companies’ need for Wall Street funding is decreasing. There has already been concern about Alibaba delisting, & now Didi has actually gone & done it.
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