Back to the complete issue
Tuesday, 19 October 2021

Fertiglobe could become Abu Dhabi’s third largest listing yet

Fertiglobe could raise as much as USD 830 mn through its IPO on the ADX, after the company said it will price its shares at the top end of its indicative range of AED 2.45-2.65 apiece, according to terms seen by Bloomberg. This pricing would make Fertiglobe’s IPO Abu Dhabi’s third-largest listing. Fertiglobe, a joint venture between Abu Dhabi National Oil Co. and Nassef Sawiris’ OCI, is offering 13.85% of the company in the IPO. The nitrogen fertilizer producer will be valued at USD 6 bn, according to Bloomberg, as it benefits from soaring fertilizer prices and damage dealt to rivals as a result of the natural gas supply crisis. Our friends at EFG Hermes are bookrunners on the transaction.

Was lockdown trading (and meme stocks) just a flash in the pan? Covid-related restrictions saw many normies take up trading as a pastime, the FT writes, citing data showing that 30 mn new investing accounts were opened in the US in the first year of the pandemic. The unprecedented rise in retail investors saw them make up 25-30% of total US trading at their peak, up from the 10-15% recorded pre-pandemic. But this “army of lockdown traders” has slowed down now that countries are opening up again: 3Q2021 saw an 8% drop in trading activity in comparison to the quarter before.

Other stories worth knowing about:

Up

EGX30

11276.17

+1% (YTD: 4%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

11,758.02

-0.1% (YTD: 35.3%)

Up

ADX

7,893.01

+0.7% (YTD: 56.4%)

Up

DFM

2,817.17

+0.5% (YTD: 13%)

Up

S&P 500

4,486.46

+0.3% (YTD: 19.4%)

Down

FTSE 100

7,203.83

-0.4% (YTD: 11.5%)

Down

Brent crude

USD 84.08

-0.9%

Down

Natural gas (Nymex)

USD 5.00

-7.6%

Down

Gold

USD 1,764.90

-0.2%

Up

BTC

USD 61,812.77

+1.66% (as of midnight)

THE CLOSING BELL-

The EGX30 rose 1.1% at yesterday’s close on turnover of EGP 1.4 bn (7% below the 90-day average). Local investors were net sellers. The index is down 4.0% YTD.

In the green: GB Auto (+7.8%), CIRA (+6.6%) and Pioneers Properties (+4.4%).

In the red: Abu Kir Fertilizers (-4.3%), AMOC (-2.4%) and MM Group (-2.0%).

Asian markets are (ever so slightly) in the green, while futures suggest European shares will have a mixed open this morning and Wall Street is on track to start the day largely flat ahead of earnings reports expected today from Netflix, J&J, P&G and United Airlines.

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.