EFG Hermes Prepares to List 3 Companies on the Egyptian Exchange, Anticipating Historic Deals and Foreign Investments
Egypt Set for One of the Largest IPOs in Its Modern History
Karim Awad, CEO of EFG Holding, confirmed preparations to list 3 new companies on the Egyptian Exchange (EGX) during the current year. He highlighted that one of these upcoming offerings, denominated in USD, is expected to rank among the largest IPOs Egypt has witnessed in nearly two decades. Awad noted that offering a significantly large free float will mark a major turning point and serve as a practical test to re-attract foreign liquidity.
Upcoming Offerings and Strong Momentum for the EGX
Awad projected an exceptional performance for the stock market during the fourth quarter of the year, driven by the rollout of listing plans for MNT-Halan's Egyptian arm, where EFG Hermes serves as Joint Global Coordinator and Bookrunner alongside Citi. He added that the success of these listings would encourage foreign investors to reinvest their profits into other local stocks, alongside a notable surge in M&A activity.
Exchange Rate Flexibility and Resilience Amid Geopolitical Challenges
Awad pointed out that the exchange rate flexibility maintained by the Central Bank of Egypt has reinforced global investor confidence, safeguarding monetary policy and foreign reserves. He added that Foreign Direct Investment (FDI) has increasingly shifted toward greenfield projects, particularly in the Suez Canal Economic Zone, led by investors from Turkey, China, and India.
Regional Market Outlook and Non-Banking Financial Services
On a regional level, Awad anticipated muted IPO activity across Gulf markets in the near term, with a substantial recovery expected by 2027. He also dismissed concerns over a bubble in the local consumer finance sector, emphasizing that default rates remain extremely low across the industry, while noting that the microfinance segment is the one currently requiring greater support.