Pre-Trading Thoughts

The government is looking to sell a c.70% stake in the 4.8-GW Beni Suef combined-cycle power plant. An indicative value of USD1.4-1.9 bn was assigned to the asset. Two unnamed investors are looking to acquire a stake in bottled drinks firm Safi. A further stake in the Zafarana wind farm will be offered to international investors aside from the portion that the government has in principle agreed to sell to multinational shipping giant Maersk.Midtereania Capital showed interest in acquiring a majority stake in Middle East Glass Manufacturing Co. amidst interest from multiple other entities. The government is considering offering the Jabal Al-Zeit station to generate electricity from wind through a competitive offering to a number of investors for USD300 million next October.The government is looking to sell up to 40% of the state-owned Helwan Fertilizers Company to a strategic investor.The Export Development Fund could bring five new manufacturing sectors into the next phase of the export subsidy scheme, which starts next month. The government will meet with businesses and investors on 2 October to discuss liberalizing Egypt’s electricity grid. The CBE plans to establish Digital Financial Identification Company to hold the bank’s stakes in a number of companies. The bank will contribute to 55% (EGP275 million) of the company’s capital.The Holding Company for Electricity targets collecting receivables worth EGP5 billion by the end of October. CCAP’s TAQA has submitted a non-binding offer to buy an unspecified stake in fuel retailer Wataniya. Initial offers range between USD250 million and USD280 million. Singapore-based chemical company Indorama is set to invest around USD700 million to establish two factories to produce phosphate fertilizers and silicon metal for solar panel production.BP intends to drill four new exploratory wells looking for natural gas in offshore Mediterranean concessions in 4Q23. Mopco 2Q23 results: • The bottom line came in at EGP1.519 billion (-38% QoQ, -8% YoY). 2Q23 bottom line negatively impacted by the slow down in top line due to lower global urea prices and absence of exceptional income• 1H23 net profit after taxes came in at EGP3.971 billion, up 6% YoY. Due to improved sales volumes and exceptional non-operating income in 1Q23. DSCW consolidated 2Q23 results: • Net profit for the quarter recorded EGP104 mn (+194.3% YoY, +531.1% QoQ). Annual rise supported by higher sales, recovering export market, and higher selling prices. While sequential rise driven by the lack of FX losses that was present in 1Q23.ORAS (FV: EGP181.70, OW) signed a contract with Eagle Hills Properties for the construction of Soul Luxury Beach Resort, on Egypt’s North Coast. PHAR disclosed that there are no offers or negotiations from PHAR’s main shareholder to sell down its stake in the company to a strategic investor. EXPA yesterday denied knowledge of any government intention to sell shares to private investors via the privatization program.Visa will provide digital payments services to EFG Holding’s aiBank. HELI signed the protocol agreement with the National Organization for Social Insurance regarding the National Organization for an offer to buy HELI's 1,695 feddan Heliopark land plot. Cigarettes' prices continue the rise after a slowdown period last two weeks driven by EAST's announcement that they will be increasing their output to 1,560 mn cigarettes a day.SWDY's (FV: EGP22.87, OW) Center Irrigation Pivots plant, located in the integrated Sokhna, in cooperation with the National Service Projects Organization (NSPO), will be launched soon.