The Egyptian investment bank EFG-Hermes has announced on April 20th in a statement that it would launch a capital increment of 391.83 million Egyptian pounds. The company which is listed on the Cairo and London stock exchange market also said it would issue 1.46 new shares for every ten existing shares.
The capital increase of EGP 391.8 million will be affected through the distribution of bonus shares at 1.460-for-10 and will be financed from 2014 earnings.
Head of Investors’ Relations at EFG Herms Hanzada Nessim explained that the company will send a request to a committee in the EGX and if this committee approved it, it would send it to the EGX’s board.
“After that EFG Hermes will call the shareholders for a meeting to approve the plan,” Nessim added.
The bank, which operates particularly in segments of the brokerage stocks, business banking, asset management and private equity, has not provided details of the time of this capital increase, merely to indicate that it will convene its shareholders to approve the transaction at a Special General Meeting.
Note that the company has received approval on the 22nd April from the Egyptian Exchange (EGX) to raise its issued capital from EGP 2.867 billion to EGP 3.3 billion.
For over 30 years, EFG Hermes has provided companies with financial services, including investment banking, asset management, securities brokerage, research and private equity, operating in Egypt, the UAE, Saudi Arabia, Kuwait, Oman, Qatar, Jordan and Lebanon.
EFG has posted net profits of EGP 706.98 million in 2014, against EGP 334.98 million in 2013.