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Tuesday, 30 July 2019

NI Capital to select quarterback for Sidpec stake sale in September

IPO WATCH- NI Capital to select quarterback for Sidpec stake sale in September: State investment bank NI Capital will announce in September the winning bid out of seven offers it received from investment banks to advise on the planned sale of an additional 23% stake in Sidi Kerir Petrochemicals (Sidpec) as part of the state privatization program, sources close to the matter tell the local press. Reports emerged earlier this week suggesting that the state investment bank would make the announcement “within days,” but the sources now say that NI Capital will only begin receiving the banks’ bids on 5 August.

Who’s in the running? NI Capital had invited the private sector to bid for the job earlier the month. Pharos, EFG Hermes, CI Capital, Beltone’s investment banking arm, Arqaam, HC Securities, and Renaissance Capital are expected to throw their hats in the ring for the quarterback role.

EARNINGS WATCH- Sidpec’s net profit fell 33% y-o-y in the first six months of 2019, the company said in a bourse filing (pdf). The company posted profits of EGP 453 mn in 1H2019, down from EGP 680 mn during the same period a year earlier. Sidpec attributed the fall to a decrease in average selling prices and the appreciation of the EGP. The slump in profits comes as the world’s largest petrochemical producers struggle with slowing global demand. Sabic this week became the latest chemical giant to feel the effects of a slowdown that is hitting industry profits across the world.

Sidpec picks NBK as loan advisor: The company has picked National Bank of Kuwait as a financial advisor for the USD 1.2 bn loan it wants to expand its new propylene and polypropylene plant.

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