Egypt and Turkey officially agreed to restore diplomatic ties and reinstate ambassadors. 

EGX Head revealed that there are talks with a large number of private companies to list them on the stock exchange, in the petrochemical, energy, and tourism sectors. 

Trading treasury bills on the EGX for primary dealers should start in 3Q23, with plans to make it available for individual investors later next year. 

SKPC’s (FV: EGP22.8, OW) BoD approved the financial valuation reports submitted by the independent financial advisor, Baker Tilly for SKPC and Ethydco. The company will announce the final swap ratio once it is approved. According to Al-Mal newspaper, sources declared that the swap ratio will be around 1.5x and that SKPC’s value per share after finalizing the deal will reach USD1.5/share (EGP46.35/share). This figure is miscalculated since it simply adds the valuation of both entities and divides by SKPC's current number of shares. In reality, once the acquisition takes place, SKPC will issue new shares to be swapped for the remaining 80% ownership in Ethydco, which means that the valuation of the new entity will be recalculated. We remind you that we valued Ethydco’s Enterprise value at 1.87x SKPC’s enterprise value, but Ethydco’s equity value is 1.22x SKPC’s value, due to the difference in debt profile between both companies since Ethydco’s outstanding debt is USD250 million.

Multinational energy firms Eni, Chevron, ExxonMobil, Shell, and BP will spend a combined USD1.8 billion to drill 35 gas exploration wells in the Mediterranean and Nile Delta over the next two years.

ESRS (FV: EGP54.60, OW), Egyptian Steel and Suez Steel companies fixed their ex-factory prices of rebars during July at c. EGP32k/ton, according to local media. The fixing came as a result of the relative stability in FX rate in the recent period, in addition to the slowdown in global steel prices.

Egypt plans to offer 5G licenses soon and is currently studying the technical and financial requirements, according to local press.

The Tax Authority will start the fourth phase of its rollout of the new e-receipt system on 15th of July 2023. Newly onboarded businesses will be required to start issuing e-receipts for all business-to-consumer (B2C) transactions from this date.

Egypt could collaborate with Turkey and Iran in the fields of electronics manufacturing and BPO (Business Process Outsourcing).

Total contractual proceeds of a number of Egyptian contracting companies operating in foreign countries exceeded USD2 billion during the past two years mainly in Saudi Arabia and some African countries.

The general authority of Damietta Port intends to invest EGP1.9 billion during the current FY23/24. 

PRDC reduced its stake in UNIT from 35.06% to 17.74%.

COMI has appointed Muhammed Omar Khan as its acting chief operating officer after Mohamed Sultan stepped down after more than 8 years in the position.