Elite Financial Consulting has announced its role as the listing sponsor for four government companies under the government offerings program, aimed at enhancing the Egyptian capital market. The companies included in this initiative are the High Dam for Electric Projects, known as Hidilco, the National Asset Management Company, the National Investment and Development Company, known as NERCO, in addition to the Tourism Development Company.
Elite is also preparing five fair value studies, including one for a company involved in agricultural activities and land reclamation, in preparation for its listing on the Nile Stock Exchange, alongside a pharmaceutical company for internal purposes and a ready-made clothing company as part of a transfer of ownership. The studies also include an evaluation of a radiology center and an assessment of an investment portfolio for one of the commercial banks for internal purposes.
Event Details
Elite Consulting aims to regain its activity strongly after a pause of about a year, as the team focuses on enhancing the mental image among clients and restoring confidence in the company's services. Saif Aouni, the Chairman and Managing Director, confirmed that the company is working on two main axes: benefiting from government offering opportunities and continuing traditional activities in the fields of company valuation and feasibility studies.
Aouni added that the company has completed business plans for three companies within the government offerings program, namely NERCO, the National Asset Management Company, and Hidilco. It is expected that Hidilco and the Tourism Development Company will join the listing on the stock exchange in the coming weeks after completing the required documents.
Background & Context
This step comes as part of the Egyptian government's efforts to enhance the capital market and attract investments, as the Egyptian stock exchange suffers from a decline in liquidity due to economic challenges. Recently, there has been an increase in demand for financial consulting services, reflecting the market's need for new strategies to boost growth.
Elite is preparing feasibility studies for various projects, including microfinance and factoring activities, in addition to real estate projects and feasibility studies for hospitals. These studies aim to support financing plans through tools such as capital increases or the issuance of sukuk and bonds.
Impact & Consequences
This step is seen as a positive indicator of restoring confidence in the Egyptian market, as government offerings are expected to attract new investors. The success of the offerings program depends on having a real discount on the fair value, providing investors with the opportunity to achieve good returns.
Aouni pointed out that the market needs greater clarity in the economic landscape for liquidity to regain momentum, as inflation, interest rates, and exchange rates are the main drivers of securities returns. Stability in the exchange rate is one of the essential elements for building trust among investors.
Regional Significance
This initiative is part of broader efforts to strengthen the Egyptian economy and may inspire other countries in the region to adopt similar strategies. In light of global economic challenges, enhancing the capital market is a vital step to support economic growth.
In conclusion, these developments reflect the importance of restoring confidence in financial markets, contributing to attracting investments and boosting economic growth in the region.