Back to the complete issue
Tuesday, 1 June 2021

Juhayna isn’t facing imminent delisting

HOLD YOUR HORSES- Dairy giant Juhayna is not facing imminent delisting despite being set to move tomorrow to the “D-list” of naughty companies thanks to a delay in the disclosure of its FY2020 financials. The EGX said this morning it would move JUFO and a handful of other companies to the D-list if it did not submit audited financials by today — the bourse’s final deadline for companies to report their FY2020 results. The EGX had issued a warning to companies who had not yet submitted last year’s financials on 25 May that they would be placed on the list if they did not submit them by 1 June.

Orascom Investment Holding and El Wadi Touristic Investment both made the deadline by filing financials today.

What does it mean to go on the D-list? Investors will no longer be allowed to buy Juhayna shares on margin, and they won’t be on the list of stocks in which same-day trading is permitted. The shares would also face a 5% up-or-down limit instead of the 10% band in which they’re presently allowed to trade. “A company would generally sit on the D-list for a very, very long time before the EGX would start delisting procedures against them,” a veteran market observer told us.

When does JUFO plan to file its financials? “We’ve been one of the most compliant companies on the EGX and have never been fined since our IPO,” Investor Relations Director Khaled Daader told us this afternoon. “This is unfortunate, but it’s a short-term thing. We have two auditors: KPMG and Grant Thornton. One is more or less finished with its review and the other has asked for a final two-week extension, which would take us until mid-June. We’re hopeful we will be able to meet that deadline.” If it does, JUFO would then go before an EGX committee that meets each week and be bumped back to the “A” list.

Background: The EGX had set up the D-list of stocks in August of last year as part of a compliance grading system for listed companies. Offenders usually land on the list for repeated violations of EGX compliance rules and could face potential delisting if they remain on the list.

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; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.