· Three-month window opened for shareholders to convert the currency of trading on their EKH shares from USD to EGP
· The rationale for allowing investors to convert their shares to EGP is to incentivize trading and greater liquidity on the share and to widen EKH’s shareholder base
· Shareholders who elect to change the currency of trading of their shares to EGP will continue receiving future cash dividends when announced in USD
· Investors in EK Holding have received annual dividends since 1999
· EKH has announced a plan to invest USD 300 million over the next 18 months
By : Ahmed Helmy
Egypt Kuwait Holding (EKH), a leading direct investment company in MENA has direct investments in more than 20 companies including companies in five main strategic sectors: Upstream Gas, Fertilizers and Petrochemicals, Gas Distribution, Electricity and Insurance, is now enabling its shareholders to switch the currency of trading of their shares from USD to EGP; a move that aims at incentivising trading of its shares on the EGX and attract new investors to join its existing investor base exceeding 11,000 investors.
During the three-month window that started 15 June and will end 14 September 2021, the shareholders of EK Holding have been granted the option to convert the currency of trading of a portion or all of their shares from USD to EGP by submitting requests to their respective custodians. The currency conversion option is only applicable to those whose shares are listed on the Egyptian Exchange (EGX), not the Boursa Kuwait (KSE).
Investors who elect to convert their shares to EGP shares will continue to receive dividends in USD. Since 1999, and over the past 22 years, EK Holding has paid out steady dividends: 16 times in cash, five times combined cash and stock and one time in stock.
Commenting on the currency conversion option, Sherif El-Zayat, Chief Executive Officer at Egypt Kuwait Holding, noted: “Following a robust 17 per cent increase in revenue and 32 per cent bottom line growth in Q1 2021, and coupled with the resilient performance of EK Holding throughout the global pandemic, the decision to enable currency conversion was taken to incentivize trading and enhance liquidity on the share, while simultaneously seeking to boost investor interest on EKH’s share.”
Established in 1997, EK Holding has a dual listing on both the EGX and KSE, with a market cap as of 23rd of June 2021 of USD 1.15 billion (c. EGP 18 billion).
Among EK Holding's key subsidiaries are: AlexFert, a producer and exporter of nitrogen fertilisers; NatEnergy, a company engaged in the distribution of natural gas, generation and distribution of electricity; Sprea, one of the largest manufacturers and exporters of petrochemicals and plastics in Egypt; as well as upstream gas player ONS, Delta Insurance, and many others.
Announced earlier this year, EK Holding has earmarked over USD 300 million to be invested over the next 18 months of which USD 200 are to be invested in the form of growth capital and USD 100 million of which will be allocated to increasing EK Holding’s ownership stakes in its subsidiaries.
