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Sunday, 19 January 2020

Egypt is prime MENA target for inbound M&A; EFG Hermes tops ECM league table for second year in a row

Egypt is prime MENA target for inbound M&A; EFG Hermes tops ECM league table for second year in a row: Egypt was the second-highest target of inbound M&A in MENA last year in terms of value, but accounted for one of the lowest regional shares of the M&A market in terms of volume, according to Refinitiv’s 2019 MENA Investment Banking Review. Our share of M&A transactions dropped to 2% from 8% in 2018. Across the region, energy and power continued to take up the lion’s share of M&A at 77%, with financials coming in second at 15%.

Proceeds from equity capital markets (ECM) issuances in Egypt dropped 69% y-o-y, whereas Saudi Arabia’s proceeds soared 1,860% y-o-y thanks to blockbuster transactions including Aramco and Arabian Centres. The top ECM transaction in Egypt was Rameda Pharma’s IPO in December, which reeled in USD 109.3 mn. Proceeds from our debt capital market (DCM) eased 5% y-o-y, closing 2019 just shy of USD 10 bn, with the government’s USD 4 bn eurobond issuance in February of last year accounting for the largest DCM transaction.

Our friends at EFG Hermes retained their spot at the top of the MENA ECM league table in 2019. The homegrown investment bank accounted for 5% of the total regional market across five transactions, edging out Saudi Arabia’s Sambacapital by raising some USD 1.336 bn. ECM fees soared 95% y-o-y in 2019, according to the report. Standard Chartered PLC was the top DCM bookrunner last year, and HSBC Holdings was the top M&A financial advisor in the region.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.