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Wednesday, 26 October 2022

Another electric train project + Swvl says anticipated turn to black will save it from Nasdaq delisting

PPP electric train to connect ports: The National Authority for Tunnels, El Didi Group and Gama Construction signed an MoU for an electric train project under a public-private partnership framework at the state’s economic conference, cabinet said on Monday. The agreement will see the establishment of a joint venture to build, operate, maintain, and manage a 250 km cargo-and-passengers railway project connecting key ports in the country. We have the full story in this morning’s Enterprise Climate.

Swvl is confident it can turn things around and avoid delisting from Nasdaq: The Cairo-born ride-hailing startup is positive it will turn profitable next year, Bloomberg Asharq quotes CEO Mostafa Kandil as saying. Getting the company’s balance sheet in the black will reassure investors and have a positive impact on the company’s share price, helping it to avoid a threatened delisting on the Nasdaq, Kandil suggested, adding that Swvl is already turning a profit in 70% of its operating markets.

REFRESHER- Swvl had previously planned to turn to the black by 2024, but has moved up its timeline to next year as it looks to ride out global headwinds. The ride-hailing startup has consistently traded below USD 1.00 per share since 20 September. According to Nasdaq delisting rules, the index sends a deficiency notice to any company whose share price remains below USD 1.00 for 30 consecutive business days. The listed firm then has 180 calendar days to get its share price back up or face delisting. By our count, Swvl is set to receive a deficiency notice next Monday, 31 October.

Other things we’re keeping an eye on this morning:

  • EFG Hermes has become the first financial institution in Egypt to be granted ISO 31000:2018 Enterprise Risk Management certification by the British Standards Institution. (Statement, pdf)
  • Ten people were killed and at least 9 injured when a truck and a minibus collided in Dakahlia. (Youm7 | Associated Press)

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